Most Australians use up their superannuation in retirement, contrary to claims that retirees underspend, according to the Association of Superannuation Funds of Australia (ASFA).
The association’s chief executive, Martin Fahy, said the majority of Australian retirees ran out of super well before the end of their lives and there was not a systemic problem with retirees underspending or bequeathing their super.
ASFA’s latest research found:
“The main challenge for the Australian superannuation system is to deliver higher superannuation balances at retirement,” Fahy said.
“The solution for ensuring adequacy of retirement incomes is moving the superannuation guarantee to 12%.”
Amid a challenging market environment, three super fund CIOs have warned against ‘jumping at shadows’.
The professional body is calling for the annual performance test to transition to a two-metric test, so it better aligns with the overarching duty of super fund trustees to act in the best financial interests of their members.
AustralianSuper, Rest, and HESTA agree on the need to retain and enhance the test, yet they differ in their perspectives on the specific areas that warrant further refinement.
Australia’s second-largest super fund has confirmed it is expanding its presence in the UK following significant investment in the region.
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