Tuesday 22 October 2019
AUSTRALIA'S SUPER SYSTEM WORLD CLASS
At the launch of the Melbourne Mercer Global Pension Index at the Financial Services Council (FSC) today, FSC CEO Sally Loane welcomed Australia's positioning as a world leader in superannuation.
"Ranking third behind the Netherlands and Denmark shows us the Australian superannuation system is strong but reinforces the need for more important policy reforms to ensure it continues to deliver high quality retirement outcomes," Ms Loane said.
"The implementation of outstanding reforms to our superannuation and retirement systems - including the recommendations of the Royal Commission and the Productivity Commission to ensure people need only default once into super - will ensure Australia's superannuation system continues to improve," Ms Loane said.
"We know Australia's world class superannuation system is being held back by outdated policy settings that create inefficiencies and erode retirement savings.
"We continue to urge the Government, and Parliament, to implement the recommendations of both the Royal Commission and Productivity Commission to reform default superannuation by introducing a 'default once' system.
"Creating a single default account for superannuation members, which they can take from job to job like their bank account or tax file number, is critical to end the creation of unintended duplicate accounts which currently erode the retirement savings of Australians.
"Decoupling superannuation from the industrial relations system is an essential reform to deliver a superannuation system that is fit for purpose in a changing economy and increasingly flexible work patterns, where the numbers of people with more than job is rising.
"The Report also highlights opportunities to improve the system for members at retirement, and should be closely considered as part of the Government's recently announced Retirement Incomes Review."
Contact: Esther Jago on 0421 102 944 or firstname.lastname@example.org
The Financial Services Council (FSC) has more than 100 members representing Australia's retail and wholesale funds management businesses, superannuation funds, life insurers, financial advisory networks and licensed trustee companies. The industry is responsible for investing $3 trillion on behalf of more than 15.6 million Australians. The FSC promotes best practice for the financial services industry by setting mandatory Standards for its members and providing Guidance Notes to assist in operational efficiency. The FSC's mission is to protect and enhance confidence in a strong, sustainable financial services sector that serves Australians with integrity