The latest Melbourne Mercer Global Pension Index confirms Australia's retirement system is among the world's best, the peak body for the super industry said today.
The Association of Superannuation Funds of Australia (ASFA) said the objective and international research demonstrated superannuation was instrumental in Australia being ranked third out of 18 countries covering over half of the world's population.
"It is a timely reminder, amid the extensive reforms being implemented, that the system is working and improving," said ASFA chief executive officer Pauline Vamos.
"In many other countries the costs to governments and employers have already become unsustainable and will continue to increase. In comparison, in Australia we have a system which is both affordable and comprehensive."
The Australian retirement income system was rated relatively highly in each of the areas of:
- Integrity of the superannuation sector
Australia's overall score increased compared to the previous year. The overall score is projected to further increase once the Superannuation Guarantee begins to move from nine to 12 per cent from 1 July 2013.
"The combination of the means tested Age Pension, compulsory superannuation and voluntary contributions to superannuation, provides Australia with a strong and sustainable system," said Ms Vamos.
"Most importantly, the quality of life in retirement is improving and the number of people enjoying that improvement is also increasing."
Ms Vamos said however that this didn't mean there were not still areas requiring improvement.
"Where the Australian system needs to improve is in the area of adequacy and in the provision of post-retirement solutions.
"The impending move to 12 per cent will further bolster Australia's standing, however there are impediments to the development of products serving the post-retirement market that need to be addressed.
"ASFA is in discussions with the industry and Government about these measures."
For media inquiries, please contact:
Pauline Vamos, CEO, 0433 169 342
Rebecca Glenn, GM Marketing and Communications, (02) 8079 0825 or 0416 170 439
Megan McDougall, Media and Communications Coordinator, (02) 8079 0849
ASFA is the peak policy, research and advocacy body for Australia's superannuation industry. It is a not-for-profit, sector-neutral, and non-party political national organisation whose aim is to advance effective retirement outcomes for members of funds through research, advocacy and the development of policy and industry best practice.