Former White House Communications Director and investment manager Anthony Scaramucci has praised Australia’s compulsory superannuation system, calling it a “fortification of economic security for people.”
Speaking at the ASFA Investment Summit this morning, Mr Scaramucci suggested that the United States should closely examine Australia’s lead on compulsory retirement savings.
Mr Scaramucci, a Republican, is the founder of New York-based global investment firm SkyBridge Capital. His comments echo those of BlackRock President Larry Fink, who earlier this year wrote that Australian superannuation is “a good model for American policymakers to study and build on.”
“I think Australians should be very proud of what you’ve built in your retirement system. Superannuation not only helps to look after your people when they retire, but it also guarantees a pool of capital that can be used to grow your economy. It’s a great example of the good that can be done with thoughtful government policy,” Mr Scaramucci said.
Mr Scaramucci joined CIOs, Trustees, CEOs and strategists at ASFA’s inaugural Investment Summit in Newcastle this week. The Summit brought together some of the brightest investment minds in the world to discuss the challenges and opportunities for securing Australians’ retirements in a changing world.
Other prominent members of the international investment community who attended the Summit also expressed admiration for Australia’s $3.9 trillion superannuation system.
Dr Ridah Wirakusumah, CEO of the Indonesian Investment Authority (INA) said the “guardrails” around super performance have helped secure Australians’ retirements. Referring to APRA’s performance test for super funds, he said, “It’s inspiring to me that your super funds are required by law to perform. If they don’t, they’re sort of pushed aside.”
Dr Wirakusumah spoke on a panel which examined the investment opportunities for Australian super funds in Asian markets.
ASFA CEO Mary Delahunty said, “It’s great to see such positive international recognition for our superannuation system, which is something every Australian can be proud of. It’s like the medal tally at the Olympics; we punch well above our weight.”
“We have built a system on universality (everyone is included), on equality (everyone deserves good outcomes), and on preservation (the money is secured to ensure income in retirement). With our system being the envy of the world, we should defend against threats to these core concepts. Proposals that allow early withdrawal of super – whether in housing or otherwise – will always disproportionately leave lower and middle-income earners worse off.
“It’s like running in the opposite direction mid-way through the relay race. Early release of superannuation leaves the individual worse off, but also harms the entire team. We’re at the top of the retirement-security medal tally, and Australia will continue to lead the pack as we stay committed to the core purpose of superannuation,” Ms Delahunty concluded.
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About ASFA
ASFA, the voice of super, 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. ASFA’s mission is to continuously improve the superannuation system, so all Australians can enjoy a comfortable and dignified retirement.
