A bi-partisan consensus on superannuation policy settings must be achieved to give Australian workers confidence and certainty in the future of their retirement savings, says ASFA – the Voice of Super.
“Australians need and deserve better retirement outcomes,” ASFA chief executive Pauline Vamos said.
“The first step is to ensure people put in enough so that they can get some dignity in retirement. The second is to make the taxation treatment certain so that people are encouraged to put in extra.
“The constant risk that ‘things will change’ is detrimental to achieving a public policy outcome that reduces reliance on the age pension, particularly with the ageing population.”
Ms Vamos says ASFA supports industry and system improvement.
“ASFA and its members are working hard to ensure the regulatory framework across the industry promotes efficiency, transparency and cost effectiveness,” she says. “The industry is fully engaged in implementing the Cooper report effectively.
“But increasing SG as a means to increase the super savings pool is the best way to achieve better retirement outcomes. ASFA research and analysis indicate that the adoption of the Henry Report’s recommendations on superannuation would not be as effective in delivering adequate retirement incomes as increasing the SG to 12 percent.
“The Henry proposals, if adopted, would reduce retirement savings for many, if not most, Australians and would involve a range of implementation and equity problems. They would also be a disincentive for the majority of middle income Australians to save further for their retirement.
“As such, we strongly encourage the Coalition to adopt a policy of dealing with adequacy through increasing the SG and maintaining tax concessions for voluntary contributions.”
ASFA research shows that increasing the SG would boost an average Australian’s retirement savings by $110,000 and aggregate national retirement savings by half a trillion dollars.
“Without this boost to retirement savings and the Australian economy it will become more difficult for the nation to meet the demands of an ageing population,” Ms Vamos said.
ASFA says debate on superannuation should be clear and evidence based.
“All sectors of the industry have been calling for an increase in the SG. All funds are operated by trustees that are legally bound to represent the best interests of their fund members. Sector competition is healthy and, in the end, delivers the best outcomes for members.
“The Shadow Treasurer is wrong to paint the Industry Superannuation sector as being controlled by the union movement. Industry superannuation funds are an integral part of the superannuation system and are run by trustees that represent the interest of fund members,” Ms Vamos says.
“Retirees are our consumers of the future. They deserve to have an active and robust retirement lifestyle, live healthily and continue to contribute to the consumer economy.
“Increasing SG will go a long way to achieving this outcome.”
For further information, please contact:
Pauline Vamos, ASFA Chief Executive, 0433 169 342
Michelle Dunner, ASFA GM Marketing and Communications, 0412 704 016
Sarah O’Grady, ASFA Communications Co-ordinator, 0410 439 966
About ASFA
The Association of Superannuation Funds of Australia (ASFA) is the peak industry body for the entire superannuation sector. It is the only industry body that represents all types of superannuation funds, service providers and fund members.