A 12 per cent superannuation guarantee (SG) is a good "staging point", but individuals need to save closer to 20 per cent of their income to meet their retirement needs, according to BNY Mellon Asset Management Asia Pacific chief executive Alan Harden.
Harden said that while the Australian superannuation system was a leading example for the rest of the world, it had by no means reached an end point.
"People do need to save more than 12 per cent to successfully retire. If you're running a defined benefits scheme generally you're putting 20 per cent of an individuals' salary away and more as they get older," Harden said.
He said that the extra savings could either be mandated by the Government in the form of a higher SG or simply advised - although he added that people would prefer it be mandated.
Harden also voiced concerns about the intermediated nature of the retail funds management market in Australia, which he said increased costs for the end investor unnecessarily.
"Every aspect of the market is intermediated. And what I mean by that is advisers, platforms, as well as the manufacturers, all require ratings in some form," Harden said.
He said that Government proposals such as MySuper and the Future of Financial Advice could help solve the problem.
"That intermediation is obviously under review in trying to get the cost to the customer down, and I think that's a very positive thing for the long-term growth of the industry. It will likely cause some consolidation, which will be beneficial I suspect," Harden said.
The research house has offered a silver lining after super fund returns saw the end of a five-month streak last month.
A survey of almost 6,000 fund members has identified weakening retirement confidence, particularly among those under 55 years of age, signalling an opportunity for super funds to better engage with members on their retirement journey.
The funds have confirmed the signing of a successor fund transfer deed, moving closer to creating a new $29 billion entity.
A number of measures, including super on Paid Parental Leave, funding to recover unpaid super, and frameworks to encourage investment in the energy transition, have been welcomed by the superannuation industry.
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