POWERED BY MOMENTUM MEDIA
Australia runs second on pensions
Australia's superannuation regime may be the envy of the world, but it has failed to top a new global pension index and has had to settle for second.
The inaugural Melbourne Mercer Global Pension Index, produced by the Melbourne Centre for Financial Services and Mercer, gave the top ranking to the Netherlands, with 76.1 out of a maximum of 100, followed by Australia with 74 and Sweden with 73.5.
Commenting on the index outcome, Mercer Worldwide Partner on Retirement Risk David Knox said with the Australian superannuation system currently under the spotlight of the Henry and Cooper Reviews, the index represented a timely reminder that while the system had many good features, there was still much that could be done to improve its adequacy.
He pointed out that no country on the index had been classed as having an 'A-grade' system, which entailed registering a score of more than 80.
"The fact that no country achieved an A-grade classification confirms that no one system is perfect or currently robust enough to withstand the growing challenges of supporting an ageing population," Knox said.
"The best arrangements for a particular country will depend upon its individual social, economic, political, cultural and historical context," he said. "However, governments can learn lessons to help them better prepare for demographic change by looking at other retirement income systems."
AUTHOR
Mike Taylor
Recommended for you
Superannuation funds have posted another year of strong returns, but this time, the gains weren’t powered solely by Silicon Valley.
Australia’s $4.1 trillion superannuation system is doing more than funding retirements – it’s quietly fuelling the nation’s productivity, lifting GDP, and adding thousands to workers’ pay packets, according to new analysis from the Association of Superannuation Funds of Australia (ASFA).
Large superannuation accounts may need to find funds outside their accounts or take the extreme step of selling non-liquid assets under the proposed $3 million super tax legislation, according to new analysis from ANU.
Economists have been left scrambling to recalibrate after the Reserve Bank wrong-footed markets on Tuesday, holding the cash rate steady despite widespread expectations of a cut.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom 465 Calder Road Calder
99.46 3 y p.a(%)
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
78.55 3 y p.a(%)
4
BetaShares Crypto Innovators ETF
50.39 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
47.50 3 y p.a(%)
