POWERED BY MOMENTUM MEDIA
Redesign age pension, says Rice Warner
Actuarial consultancy Rice Warner has called for a far-reaching overhaul of the Australian superannuation system, including a redesign of the age pension, universal compulsory superannuation and a better deal for low-income earners.
The suggestions are included in the company's submission to the Henry Review into Taxation and specifically calls for the age pension to be redesigned such that retirees would be forced to use their own funds before becoming eligible.
The submission points to what it describes as key systemic weaknesses in the system, including that too many Australians are excluded from the compulsory superannuation guarantee regime, collection and allocation of the superannuation guarantee is inefficient, the age pension is too low and too many Australians receive a full or part age pension.
Like the industry funds and the Australian Institute of Superannuation Trustees, Rice Warner argues that the tax concessions on superannuation are tilted to high-income earners.
However, the Rice Warner submission argues that equity can be injected into the system via tax rebates for low and middle-income earners.
AUTHOR
Mike Taylor
Recommended for you
“Slow and steady” appears to be the Reserve Bank’s approach to monetary policy as the board continues to hold on to its wait-and-see method.
AFCA’s latest data has shown a decline in complaints relating to superannuation, but there is further work to be done, it has warned super funds.
Limited exposure to fossil fuel companies has positively impacted the performance of Australian Ethical’s balanced and growth funds, the super fund says.
The major bank has announced that real-time super payments will soon be available to all QuickSuper employers ahead of the looming payday super regime.
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(%)
