The flaws in the superannuation arguments being promoted by the Grattan Institute and others have been rammed home by a new Mercer Report released today.
The report, authored by Mercer’s David Knox, declares that the Grattan findings are flawed because it has used a series of assumptions that is not realistic for the average Australia.
Pointing to the dangers posed by the Government’s announcement of a review of Australia’s retirement income system, Knox backed his analysis by claiming that the Grattan assumptions simply did not stack up to closer scrutiny.
He said, on that basis, it was “vital to counter misleading conclusions to ensure all discussion and debate is grounded in reality and typical behaviour”.
Knox’s report for Mercer found that the Grattan Institute’s assumptions were based on a number of flawed assumptions including:
Knox said Grattan’s sole focus on retirement income also failed to consider the need for flexibility to provide retirees with access to capital, an important feature of retirement products.
“Mercer’s research has shown that retirees want a stable income for their whole life, as well as access to capital to provide them with some protection from unexpected expenses that can easily occur during retirement,” he said.
Dr Knox warned policy makers to approach Grattan’s research with “considerable caution” given it was limited to “a single cameo” that had given rise to “misleading” conclusions.
The Future Fund’s CIO Ben Samild has announced his resignation, with his deputy to assume the role of interim CIO.
The fund has unveiled reforms to streamline death benefit payments, cut processing times, and reduce complexity.
A ratings firm has placed more prominence on governance in its fund ratings, highlighting that it’s not just about how much money a fund makes today, but whether the people running it are trustworthy, disciplined, and able to deliver for members in the future.
AMP has reached an agreement in principle to settle a landmark class action over fees charged to members of its superannuation funds, with $120 million earmarked for affected members.