POWERED BY MOMENTUM MEDIA
Super needs narrower focus
Although Australia’s superannuation system needs to evolve in line with changing demographics, it needs to stay focused on the funding of retirement incomes, according to Deloitte Partner Ian Harper.
“The system does need to evolve to managing longevity risk and to integrate with the funding of age care,” he said.
“Some of that will occur naturally as the transition occurs, but there may also be scope for some encouragement.”
Harper said that although the system needed to make changes as the population shifted from accumulation to retirement phase, mandating asset allocation or subjecting the industry to onerous liquidity rules would lead the super system away from its main objective.
Although there were good arguments for encouraging super fund investment in certain assets, funds often had legitimate reasons not to invest, according to Harper.
Rather than mandating certain investments, Harper said policies such as incentivising the development of new products would serve the retirement savings system better.
“We should go extremely cautiously in trying to make a superannuation system do all things for all people,” he said.
“We would be much better served by a superannuation system that sticks to the main game and focuses on the funding of retirement incomes for Australians.”
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
The two funds have announced the signing of a non-binding MOU to explore a potential merger.
The board must shift its focus from managing inflation to stimulating the economy with the trimmed mean inflation figure edging closer to the 2.5 per cent target, economists have said.
ASIC chair Joe Longo says superannuation trustees must do more to protect members from misconduct and high-risk schemes.
Super fund mergers are rising, but poor planning during successor fund transfers has left members and employers exposed to serious risks.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
88.01 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
72.60 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
44.46 3 y p.a(%)
4
Pengana High Conviction Equities B
39.12 3 y p.a(%)
5
Pengana High Conviction Equities A
39.05 3 y p.a(%)
