The Association of Superannuation Funds of Australia (ASFA) has welcomed the release of the Retirement Income Review, which found Australia’s retirement income system is effective, sound and its costs are broadly sustainable leaving it well-placed to deal with economic volatility and the challenge of an ageing society.
“The Retirement Income Review confirms that Australia’s superannuation system is on track to deliver on its promise to allow Australians to face retirement with confidence,” said ASFA CEO, Dr Martin Fahy.
The review highlights the role superannuation has played in keeping the burden of the Age Pension below 2.5 per cent of GDP (half the cost borne by our nearest OECD counterparts) allowing the Age Pension to be kept for those that need it most.
The report echoes ASFA’s concerns that unnecessary tinkering by successive governments has led to unwarranted and costly complexity in the system settings. ASFA strongly disagrees with the review regarding the importance of increasing the SG to 12 per cent.
“ASFA research found that 75 per cent of Australians support the legislated increase to 12 per cent SG which is a cost to business of less than one dollar a day for the average worker.
“For many Australians the increase to 12% SG is essential to offset the financial loss from super withdrawn under the COVID-19 early release scheme.”
For further information, please contact:
Jacqui Maddock, 0451 949 300.
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. ASFA’s mission is to continuously improve the superannuation system, so all Australians can enjoy a comfortable and dignified retirement.