POWERED BY MOMENTUM MEDIA
Super has added $500b to households since inception
Australian households now have $500 billion in savings thanks to the introduction of compulsory superannuation, of which $35 billion is from workers in the bottom 20% by income, according to the Association of Superannuation Funds of Australia (ASFA).
ASFA’s latest research on the benefits of the super system found the system delivered tangible benefits to households across the income spectrum and for many it was the primary means to participate in the country’s economic success through asset ownership and diversification.
ASFA chief executive, Dr Martin Fahy said: “The strength of Australia’s superannuation system is evident from the important role super is playing to help provide both short term financial relief to people hardest hit by the COVID-19 crisis and investment capital critical to the economic recovery.
“Australians value a fair go for all and we don’t leave people behind. The research shows that superannuation shares the benefits of long-term wealth accumulation across our society and gives everyone the opportunity to retire with dignity.
“The current crisis has highlighted the immeasurable contribution of front-line workers within our community. Through compulsory superannuation, all Australians share in the prosperity that is built on the backbone of their hard work and sacrifice. This must never be the preserve of the wealthy elite.”
ASFA noted the legislated increase in the superannuation guarantee (SG) rate to 12% would see half of all Australians achieve a self-funded retirement by 2050.
The research also found that super had unambiguously improved the asset diversification of Australian households’ balance sheets, particularly for low income earners, helped make wealth inequality in Australia among the lowest in the world, and improved the sustainability of the Age Pension and took pressure off future federal government budgets.
Recommended for you
The UK aims to boost investments via Australia’s super fund sector, unlocking major bilateral business and growth opportunities.
The Future Fund has received government approval to internally manage transactions in Australian infrastructure and property, marking a significant shift in its investment approach after nearly two decades of relying solely on external managers.
The super fund has welcomed Robert Potter and Wayne Davy to its board of directors.
Private market assets in super have surged, while private debt recorded the fastest growth among all investment types.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
53.24 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
43.15 3 y p.a(%)
4
DomaCom Shoreline North Coogee
36.26 3 y p.a(%)
5
GAM LSA Private Shares AU I
35.87 3 y p.a(%)
