6th Feb 2018

Australian super continues to lead the world: report

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Aussie super assets grow fastest

Australia's superannuation market is the fastest growing among other major pension systems around the world, according to a new report.

Australia's superannuation assets grew 12.1 per cent per annum over the last 20 years, faster than any other country with an established pension system, underpinned by compulsory contributions, higher growth asset allocations and general strength in investment markets, according to the 2018 Global Pension Asset Study.

The research also showed that Australian superannuation assets grew by 7.1 per cent per annum over the last decade.

The ratio of super assets to GDP now stands at 138 per cent; up from 126 per cent in 2016, and an increase of 24 per cent in the last 10 years.



Paul Newfield, a senior investment consultant at Willis Towers Watson, which commissioned the research, said the findings were encouraging for Australian retirees.

“Australia continues to be among the world leaders and punch well above its weight in terms of assets in the system and continued growth rate of these assets,” Mr Newfield said.

“Pension assets in Australia also continue to rise as a percentage of GDP and the pension system continues to influence the political agenda, and the size and significance of the system is likely to see this trend continue.”

While the overall outlook was good, Mr Newfield also pointed to the challenges ahead as pension systems struggle to cope with ageing populations.

“Challenges that lie ahead for funds worldwide include the need for countries with ageing populations to accommodate increased benefit payments and to see how countries can deliver better retirement outcomes and opportunities for members,” Mr Newfield said.

What do you think of Australia’s superannuation system? Are you worried about the Government making changes that will damage the performance of superannuation funds?

 


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COMMENTS

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TREBOR
7th Feb 2018
10:20am
Good to know that, on paper anyway, things aren't as bad here as the ROTW.... doesn't say much for the ROTW and how it is being managed, does it?
floss
7th Feb 2018
10:30am
Thank god the Unions set up Industry Funds in competition to bank run super funds.
Cowboy Jim
7th Feb 2018
11:30am
Pointless having a super account past pension age; took everything out and put it in the bank and let Centrelink deem it. No more sleepless nights like in 2008/09 when our super lost $150'000 within a couple of weeks. Might be different for the young ones who might have a $1 million by the time they retire but even the million will not be that much any more in 20 years.
Old Geezer
8th Feb 2018
3:41pm
All super is is a way of minimising your tax. If your super doesn't minimise your tax or worse has no effect on the amount of tax you pay then I tell people why have a super account as they cost money to run.
floss
7th Feb 2018
10:35am
Just hope the Federal Government keep their greedy hands off our super, if they do It will be just another stuff up will they ever learn.
TREBOR
7th Feb 2018
11:07am
A universal super fund could consider applications from government for specific projects... provided it was totally insulated from the grasping hands of politicians, their cronies and their families, who all see the general public as just a huge milking cow with plenty more to take where that came from, and 'spreading the pain' means it only hurts the many a little bit per person.

Trouble is that 'little bit' is growing like cancer.
indi
7th Feb 2018
10:40am
The problem with down turns in super is 1% down one day is a great loss but it takes more than 1% up to regain status Quo
VeryCaringBigBear
7th Feb 2018
11:41am
That's just maths for you.
TREBOR
7th Feb 2018
12:55pm
'Caring Big Bear'? Hmmmmm..... just hmmmmm.....
VeryCaringBigBear
7th Feb 2018
11:36am
Unless you have a SMSF then you are only getting the scraps left after everyone has been paid.
indi
7th Feb 2018
11:55am
$100,000 -1% ==$999,000 =$1,000 loss $ 999,000 x1% up =$999,900 leaving a loss of $100
consider this scenario many times over the years and capital loses are quite considerable
VeryCaringBigBear
7th Feb 2018
1:16pm
Yes that just maths. A percentage of a bigger figure is a bigger amount than a percentage of a smaller figure.

Capital losses only occur if you sell at the wrong time at les than you paid for something.
OnlyGenuineRainey
7th Feb 2018
5:24pm
And the stupid assets test forces you to sell or live on nothing. But you defend that idiotic policy and abuse those who argue that it's wrong, while taking unethically from the public purse yourself. Hypocrisy is sickening.
Old Geezer
8th Feb 2018
3:38pm
Hypocrisy maybe sickening but abuse should not be tolerated at all.
Old Man
7th Feb 2018
12:34pm
I suppose when it's all boiled down that super funds becomes a very personal thing. We take out the minimum as required by law each year and the percentage we achieve each year is higher than the percentage we withdraw so, in theory, we will never run out. We're OK with this arrangement.
Cowboy Jim
7th Feb 2018
12:42pm
Long may your good run continue, Old Man. With a good sized pot and fair winds behind you your future is assured.
Boof
7th Feb 2018
12:54pm
When we got our super in 1989. Lump sum. Some of it was tax free. Can't think of the year when the Govt. decided to tax it. Maybe about 1980. Not sure. They found out they were missing out on revenue. Take more money from the workers. State or Govt. Super funds are the only way to go btw.
Had a friend who retired at 60, with 40 years in the one Co. His wife & he were to retire to the Central Coast. Guess what. No Super. He said. "The paymaster told him that, if it is any consulation. He had lost his super too. Bad investments. He said. He went back to work till he was 65.". STATE OR FEDERAL SUPER...ONLY. Please.
Rae
7th Feb 2018
2:07pm
Yes indeed Boof. Same thing when my husband died. His super was all gone too. It was an industry fund run by the building union.

Some very strange things happened to super in the 80s.
Boof
7th Feb 2018
12:56pm
The Govt. WILL find a way to get your money. Anyway.
KSS
7th Feb 2018
1:06pm
A good news story so why all the negativity? Again!
VeryCaringBigBear
7th Feb 2018
4:02pm
This is tall popper syndrome at work with lots of welfare people who whinge no matter how much they get it is never enough.
OnlyGenuineRainey
7th Feb 2018
5:21pm
Never enough for greedy folk like you who manipulate unethically to take money intended for the less well-off, BigBear.
johnp
7th Feb 2018
1:12pm
All the comments etc I have seen over the last year or so have now made may reconsider my super.
Basic economics say :
One should spend down the lump super sum to the lower threshold (think it is $380K-) so as not to forgo the OAP ongoing $$ amount. Like say holidays, give to children etc . And apply for the OAP (71 now and get zero benefits at present).
However have to be careful to not lose eligibility to OAP by doing that; so would that be a problem ??
BTW what is ROTW ?
Rae
7th Feb 2018
2:12pm
May as well have holidays while still young enough to enjoy them.

Also set up the house for retirement with everything you need.

The $380 000 is a good back up.

The only problem is gifting to the kids has to be done 5 years before applying for the OAP.

You can spend what you like any other way though just can't help your family or charity. You could blow it all on a gambling spree and that would be okay but for goodness sake don't help your family as that's a no no.

Go figure!
johnp
7th Feb 2018
2:20pm
Rae; thanks for the reply.
So is it really a fact that can spend on anything except family or charity ??
If thats the case then the holidays etc is good way to go.
I believe one needs to keep the overall amount under the $10K limit to family over 3 year period. That also right ??
VeryCaringBigBear
7th Feb 2018
2:48pm
There are many ways that many people get around Centrelink rules. As long as you can prove you spent the money on yourself then you will have no problem with Centrelink.
VeryCaringBigBear
7th Feb 2018
2:50pm
Heard the other day that one lady told Centrelink she had purchased Gift Cards to pay her tax bill and sent them to a fraudster. She failed to mention her grandkids were the fraudsters.
TREBOR
7th Feb 2018
3:18pm
ROTW - Rest Of The World..

ROTW - Rest Of The West .. depends on your comment's base.

I like that story, CBB - Centrelink is setting a thief to catch a thief... wait until Sercom takes over - then you'll really see the thieves in action.
The Bernster
7th Feb 2018
1:34pm
johnp - ROTW = rest of the world.
johnp
7th Feb 2018
1:37pm
thanks Bernster, I realised that 5 mins after I posted
The Bernster
7th Feb 2018
1:39pm
Glad I'm in OZ, as much as we complain about our super system, its a gem compared to the USA. Watched a doco on Youtube yesterday called The Retirement Gamble, about the USA pension system, 401K etc, what a mess.
Anonymous
7th Feb 2018
2:38pm
It’s a great system and they have social security too

7th Feb 2018
2:37pm
Rubbish
Most 401k plans in the US would have fared way better with US market outperforming Oz
Boof
8th Feb 2018
3:31pm
I don't know what SERCOM is?
*Imagine*
8th Feb 2018
6:43pm
I imagine it has something to do with 'trimming your assets' try that for cise, sorry size.
Careworn
10th Feb 2018
9:16pm
Well that's all well and good but what a way to retire having to worry if the stock market is going to crash with looney Donald at the helm. So if you play safe with your super and put it in their cash option you will be lucky to make 2% and then minus their fees. Also, I don't think the government realizes that there are people out there who have not been big wage earners but have saved their money throughout their lives so that in their old age they can afford to pay for their own private medical care and and home care. Now the government expects those people to live off their savings so that there will be nothing left for private medical care and home care when the times comes. It seems that doing the right thing, was the wrong thing to do after all. It is all grossly unfair.


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