Five questions about superannuation the Federal Government's new inquiry must ask
5 years, 3 months ago

Five questions about superannuation the Federal Government's new inquiry must ask

ABC  

The government's new retirement incomes review will need to work quickly. In 2014, more than 20 years after compulsory super began, the Murray Financial System Review asked the government to set a clear objective for it, and two years later the government came up with one, enshrined in a bill entitled the Superannuation Bill 2016. The bill lapsed, but the objective at its centre lives on as the best description we've come up with yet of what compulsory super is for: To provide income in retirement to substitute or supplement the age pension Which raises the question of how much we need. Assuming for the moment that how much people need in retirement is relevant for determining how much compulsory super they need, the inquiry will need to examine what people need to live on in retirement. But because the question hasn't been asked, not since the Fitzgerald report on national saving in 1993 shortly after compulsory super was introduced, we don't know.

Savings National Inquiry Saving Need Super Wage Wage Growth Superannuation Compulsory National Savings Compulsory Super Compulsory Superannuation National Saving Private Saving  governments  need  federal  super  savings  national  superannuation  compulsory  wage  questions  times  saving  ask  inquiry

History of this topic

How Australian workers' superannuation is funding new housing and property developments overseas
1 month, 2 weeks ago

How Australian workers' superannuation is funding new housing and property developments overseas

ABC  

Australians' hard-earned money is funding the construction of a mammoth "new town centre" development in London and helping to meet the city's housing shortage. The enormous Canada Water project promises 3,000 net-zero homes, office spaces for 20,000 workers and a lush retail precinct and it's just an example of international projects Australian superannuation funds are investing in. Nestled in between …

One in four workers missing out on being paid their superannuation for retirement
4 months, 2 weeks ago

One in four workers missing out on being paid their superannuation for retirement

ABC  

Australia's $3.9 trillion super system is failing to deliver financial security in retirement to millions of Australians. Over nine years, the analysis suggests that Australians have missed out on $41.6 billion in unpaid super, with women, people in insecure work, migrant workers and younger workers more likely to have been unpaid. The analysis shows men comprised 56 per cent of …

Some of Australia's biggest super account holders support the government's plan to make them pay more tax
1 year, 10 months ago

Some of Australia's biggest super account holders support the government's plan to make them pay more tax

ABC  

Gary Belgre knows few Australians are as lucky as him to have more than $3 million in superannuation. Labor's retirement tax plan follows a template set by Scott Morrison Photo shows Jim Chalmers stands behind a podium on the left and Anthony Albanese behind one on the right in a courtyard Jim Chalmers isn't the first treasurer to act on …

Labor's move to define super's 'objective' should leave room for debate on its use for housing
1 year, 10 months ago

Labor's move to define super's 'objective' should leave room for debate on its use for housing

ABC  

The Albanese government is prodding the superannuation bear, which can be a dangerous beast when stirred. 'Dutton-proofing' the super system The government's plan to legislate the "objective" of superannuation has implications for the Coalition. Photo shows Chalmers calls for crackdown on early super access Political ideology and business interests have long guided decision-making on what happens to people's superannuation. The …

Labor wants to revamp superannuation, but does it have workers' interests in mind?
1 year, 10 months ago

Labor wants to revamp superannuation, but does it have workers' interests in mind?

ABC  

In every debate about superannuation, there's a reality that is often forgotten. You could lose hundreds of thousands of dollars if you stay in a dud fund Photo shows Retirement nest egg The "name and shame" list of super funds is designed to make Australians more aware. "Right now, we're on track to spend more on super tax concessions than …

The superannuation warning that every Australia needs to read
2 years ago

The superannuation warning that every Australia needs to read

Daily Mail  

Australian superannuation balances are set to suffer their worst year since the Global Financial Crisis as higher interest rates dent share market returns. Australian superannuation balances are set to suffer their worst year since the Global Financial Crisis as higher interest rates dent share market returns Research group SuperRatings estimates balanced options in 2022 will suffer a 2.7 per cent …

The rising cost of living and global economic uncertainty mean older Australians such as Brett are delaying retirement
2 years, 5 months ago

The rising cost of living and global economic uncertainty mean older Australians such as Brett are delaying retirement

ABC  

When Brett Clements got his first job at 15, he dreamed that, if he worked hard, he would be able to enjoy the fruits of his labour and retire at 40, but it wasn't to be. Key points: The Superannuation Association of Australia estimates a single person needs $545,000 to retire comfortably One million people who withdrew some of their …

How millions of Australian workers are being ripped off by their bosses
3 years, 2 months ago

How millions of Australian workers are being ripped off by their bosses

ABC  

Bosses are failing to pay superannuation, and it's a growing crisis costing workers billions of dollars. "We investigate every claim of unpaid super that is reported to us," Ms Rosenzweig says. Ms Rosenzweig says the ATO tries to get back workers' unpaid super in cases of insolvency but, if a company no longer legally exists, "the ATO is constrained from …

More Australians are retiring with a big mortgage. Should they use superannuation to pay it off?
3 years, 4 months ago

More Australians are retiring with a big mortgage. Should they use superannuation to pay it off?

ABC  

Not so long ago the retiree stereotype looked something This relaxed scenario was possible because when it came time to give up work, most Australians owned their home outright. Without rent or mortgages to pay, "an age pension and a little bit in super was enough to get by," says Rachel Ong ViforJ, Professor of Economics at Curtin University and …

Workers in underperforming superannuation funds could lose hundreds of thousands by retirement
3 years, 4 months ago

Workers in underperforming superannuation funds could lose hundreds of thousands by retirement

ABC  

It's hard to feel sorry for underperforming superannuation funds. On Tuesday, 13 big-name funds holding tens of billions of dollars of money invested by 1.1 million Australians failed the financial watchdog's performance test. The more than 1 million Australians who are members of underperforming superannuation funds will soon receive letters urging them to switch funds. The list of the nation's …

Australians urged to switch where they invest for retirement as best and worst superannuation funds revealed
3 years, 4 months ago

Australians urged to switch where they invest for retirement as best and worst superannuation funds revealed

ABC  

More than 1 million Australians who are members of underperforming superannuation funds will soon receive letters urging them to switch where they invest their retirement savings. APRA executive board member Margaret Cole said 84 per cent of products passed the performance test, "however APRA remains concerned about those members in products that failed". Super Consumers Australia director Xavier O'Halloran says …

Superannuation boost reveals loopholes and power imbalance in wages debate
3 years, 7 months ago

Superannuation boost reveals loopholes and power imbalance in wages debate

ABC  

The debate over superannuation is now officially dead. After almost a year of deliberations and debate, with Prime Minister Scott Morrison angling to cap superannuation contributions at 9.5 per cent, the federal government finally relented in April. When Paul Keating established the compulsory superannuation system in the late 1980s, the idea was that workers would forego future wage hikes in …

Superannuation rises could come at the cost of wages — workers may end up paying for their own super rise
3 years, 7 months ago

Superannuation rises could come at the cost of wages — workers may end up paying for their own super rise

ABC  

Workers expecting a big jump in their superannuation payments could get a shock on July 1. Key points: The superannuation guarantee is the proportion of wages employers must contribute to workers' retirement savings It's set to rise from 9.5 per cent to 10 per cent from July 1 But employment lawyers and others are warning some bosses may make workers …

How federal budget superannuation changes could increase your nest egg
3 years, 8 months ago

How federal budget superannuation changes could increase your nest egg

ABC  

Employers will have to dish out more funds to pay millions of Australians' higher compulsory superannuation under new changes announced in the federal budget. Super Consumers Australia director Xavier O'Halloran says the $450 a month threshold is an "archaic rule from a paper-based era that left some people not receiving any super for the hours they worked every week". Industry …

Paul Keating says Australians owed superannuation increase after being 'robbed' of real wage adjustments
3 years, 9 months ago

Paul Keating says Australians owed superannuation increase after being 'robbed' of real wage adjustments

ABC  

Former prime minister Paul Keating has reignited claims a rise in the superannuation guarantee is the only way Australians are going to be able to adequately afford retirement without overburdening the pension system. Key points: The super guarantee is legislated to increase to 12pc by 2025, but the government says a decision will be made closer to the deadline Paul …

Superannuation cannot rise without stalling wage growth, RBA documents reveal
3 years, 11 months ago

Superannuation cannot rise without stalling wage growth, RBA documents reveal

ABC  

Australia's superannuation rate is legislated to rise but it could cost workers an increase in wages. Key points: Superannuation is legislated to increase to 10 per cent on July 1 FOI documents from inside the Reserve Bank of Australia show it believes a rise in superannuation will cost wages The view is based on the work of one think tank, …

Super release slows but almost 3 million Australians have sucked billions from retirement savings
4 years ago

Super release slows but almost 3 million Australians have sucked billions from retirement savings

ABC  

The controversial coronavirus measure allowing Australians affected by the pandemic to tap into their retirement savings will close from New Year's Day. Key points: Almost 3 million Australians have withdrawn their superannuation early under the Government's coronavirus response $36 billion has been claimed, slightly below Treasury estimates in July The scheme closes on December 31 But not before nearly 3 …

Federal Government to assess superannuation, housing policy after Retirement Income Review
4 years, 1 month ago

Federal Government to assess superannuation, housing policy after Retirement Income Review

ABC  

Australians could be encouraged by the Federal Government to draw down on their superannuation balances and use equity in the family home to fund their retirement, rather than rely on increases in compulsory super contributions. Key points: The review was delivered to the Government in July but will be released publicly on Friday Parts of it focus on the potential …

Superannuation increase faces growing opposition from Government MPs and economists
4 years, 3 months ago

Superannuation increase faces growing opposition from Government MPs and economists

ABC  

Like most people his age, 19-year-old Zac Webster doesn't pay a great deal of attention to his super. Key points: The superannuation employers must pay workers is legislated to rise from next year until it hits 12 per cent by 2025 A debate is brewing about whether the rise will mean employers refrain from increasing wages There are calls for …

Australia's top economists oppose the next increases in compulsory super: new poll
4 years, 4 months ago

Australia's top economists oppose the next increases in compulsory super: new poll

ABC  

The five consecutive hikes in compulsory super contributions due to start next July should be deferred or abandoned in the view of the overwhelming majority of the leading Australian economists surveyed by the Economic Society of Australia and The Conversation. But ahead of the most recent increase in compulsory super, from 9 per cent of salaries to 9.5 per cent …

Contributions to your super are set to get a boost next year — but coronavirus could send the plan off the rails
4 years, 4 months ago

Contributions to your super are set to get a boost next year — but coronavirus could send the plan off the rails

ABC  

For nearly 30 years, Australian governments have been working to get the percentage of your wage that employers must contribute to your retirement savings to 12 per cent. Here's what that looks like: Period General super guarantee July 1, 2002 - June 30, 2013 9 July 1, 2013 - June 30, 2014 9.25 July 1, 2014 - June 30, 2021 …

Paul Keating says superannuation withdrawals dwarf coronavirus support schemes like JobKeeper
4 years, 5 months ago

Paul Keating says superannuation withdrawals dwarf coronavirus support schemes like JobKeeper

ABC  

Former prime minister Paul Keating says the early withdrawal of superannuation dwarfs the support the Federal Government has injected through its JobKeeper program — and has entrenched inequality between Australian generations. Key points: Australians are expected to have pulled $42 billion from their super accounts by the end of the year Australians are expected to have pulled $42 billion from …

Your pension payment could halve in July because of COVID-19 changes to superannuation
4 years, 7 months ago

Your pension payment could halve in July because of COVID-19 changes to superannuation

ABC  

When a letter arrived in her mailbox recently from her superannuation fund, retiree Sandra Luntz was at a loss as to what it all meant. Key points: Government changes to superannuation rules, as part of the COVID-19 stimulus package, were announced in March Reduced minimum drawdown rates will mean some retirees could have their superannuation pension payments reduced by half …

Coronavirus has forced Samuel to dip into his superannuation and he is concerned about the long-term impact
4 years, 8 months ago

Coronavirus has forced Samuel to dip into his superannuation and he is concerned about the long-term impact

ABC  

Samuel Clarke knows withdrawing his retirement savings early is not ideal. Key points: Australians are allowed to access up to $10,000 of their superannuation this financial year under the Government's coronavirus assistance scheme Australians are allowed to access up to $10,000 of their superannuation this financial year under the Government's coronavirus assistance scheme Business owner Samuel Clarke has withdrawn funds …

Coronavirus support measures see hundreds of thousands of Australians access superannuation early
4 years, 8 months ago

Coronavirus support measures see hundreds of thousands of Australians access superannuation early

ABC  

Hundreds of thousands of Australians have been granted early access to their superannuation savings, totalling $3.8 billion in early payments, Treasurer Josh Frydenberg has said. Key points: The total value of early super accessed by Australians has reached $3.8 billion The tax office has approved close to half a million claims Two weeks ago, more than 600,000 Australians had applied …

More than 360,000 Australians apply for early release of superannuation under coronavirus assistance scheme
4 years, 9 months ago

More than 360,000 Australians apply for early release of superannuation under coronavirus assistance scheme

ABC  

More than 360,000 Australians have applied to get an early release of their superannuation under the Federal Government's plan designed to help jobless Australians and those facing financial hardship because of the coronavirus crisis. Treasurer Josh Frydenberg has said the provision, announced as part of the Government's second-round stimulus package, would amount to less than 1 per cent of the …

Superannuation funds could be the answer to wage growth
4 years, 11 months ago

Superannuation funds could be the answer to wage growth

ABC  

When grappling with a complex issue, there's that moment when the heart sinks, and you accept defeat. The governor of the Reserve Bank, Philip Lowe, is big on this idea, saying in mid-2018: "…lifting productivity is the key to building on our current prosperity and ensuring sustained growth in wages and incomes." The answer is community pressure Well, when it …

Treasurer Josh Frydenberg announces first major review of Australia's retirement income system in 30 years
5 years, 3 months ago

Treasurer Josh Frydenberg announces first major review of Australia's retirement income system in 30 years

ABC  

Key points: The superannuation guarantee rate is the amount of compulsory super that must be paid to employees It is due to rise gradually from 9.5 per cent to 12 per cent by 2025 The Government's review follows a call by the Productivity Commission to conduct one before increasing the superannuation guarantee rate Treasurer Josh Frydenberg has ruled out including …

Retirement income and superannuation review has a lot of issues to look at
5 years, 6 months ago

Retirement income and superannuation review has a lot of issues to look at

ABC  

One of the first announcements by the Treasurer after the Government won last month's election was that he intended to go ahead with the Productivity Commission's call for a detailed review of Australia's retirement income system. The superannuation industry tells us we need at least 12 per cent, but bodies like the Grattan Institute, which has done detailed research on …

Increasing compulsory super will strip $20b from workers' wages, Grattan Institute says
5 years, 8 months ago

Increasing compulsory super will strip $20b from workers' wages, Grattan Institute says

ABC  

A legislated plan to increase compulsory superannuation contributions from 9.5 per cent to 12 per cent by 2025 would strip up to $20 billion from workers' wages each year, or nearly 1 per cent of gross domestic product, according to the Grattan Institute. But modelling from the Grattan Institute suggests by the time it was fully implemented in 2025-26, a …

Most Australians will retire with enough savings except older women renting, says Grattan Institute
6 years, 2 months ago

Most Australians will retire with enough savings except older women renting, says Grattan Institute

ABC  

If you are a woman in retirement who is renting in Sydney or Melbourne, you likely won't have enough savings to live comfortably, according to a new report by the Grattan Institute. "The three key flaws in the modelling are: assuming everyone can top up their super with extra voluntary contributions resulting in lifetime contributions that could be up to …

Millennials face poverty in retirement without super overhaul, think tank warns
6 years, 5 months ago

Millennials face poverty in retirement without super overhaul, think tank warns

ABC  

Policy researchers are using the latest round of hearings at the banking royal commission to push for a complete reformation of Australia's superannuation system. "As recently as 2012, two out of five people had, more or less, no super coming into retirement," CIS research director Simon Cowan said. The super myth about retirement Photo shows generic money custom picture "Savings …

Discover Related