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.
Michael Lovett, who left the investment firm just three months after launching its Vanguard Super offering, has taken up a chief executive role at an Australian asset manager.
The Central Bank of Ireland has granted the approval of Equity Trustees’ exit from its Irish operations, with the transaction expected to be complete on 30 April.
Super returns continued to climb in March, raising hopes of delivering double-digit returns by June depending on the performance of this next quarter.
The dedicated super fund for emergency services and Victorian government employees is under fire for unpaid entitlements to transport employees, which could exceed $40 million.
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