A pro rata model of compulsory superannuation contributions would address the super system that is failing young people, Vision Super and the John Curtin Research Centre believe.
In an upcoming joint report, the organisations said the pro rata model would address the disappearance of traditional nine-to-five jobs and the emergence of the “gig economy”.
The John Curtin Research Centre’s executive director, Dr Nick Dyrenfurth, pointed out that a third of young people were missing out on super contributions because they did not reach the $450 threshold from a single employer.
“In decades to come, if a third of the workplace has no retirement savings, it will have a massive impact on the Age Pension,” he said.
Vision Super chief executive, Stephen Rowe, said the super system was failing young people as work had changed since the system was designed.
“There is a growing problem that will require sophisticated, bipartisan public policy solutions to prevent millions of Australians falling through the cracks,” Rowe said.
BlackRock boss Larry Fink praised Australia’s superannuation system in his annual chairman’s letter.
The prudential regulator has announced it will publish new expenditure data of superannuation funds, providing details on expenses like advice, director remuneration, and payments to unions.
Affirming the UK’s growing attractiveness as an investment destination, a number of Australia’s largest investors recently joined the UK Foreign Secretary for an exclusive briefing in Canberra to discuss further opportunities for trade and growth.
The specialist superannuation law advisory practice is set to wind up, with managing partner Jonathan Steffanoni planning to bring a new offering to market.
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