Going through with the legislated superannuation guarantee (SG) increase over the next five financial years is a good step in stemming the growing inequality in the country, according to Rice Warner.
In an analysis, the research house said there would be several positive impacts of increasing the SG including:
Rice Warner noted low wage growth had presented middle Australians with significant challenges to their short-term financial security and living standards.
“When coupled with soaring asset values and the structural factors driving that rise, low wage growth also threatens their medium-term financial security and living standards,” it said.
“Let us not threaten their long-term financial security and living standards as well by retreating from our commitment to what is globally recognised as one of the very best retirement systems. Instead, let’s focus on ways to improve the system and make it even better.”
The research house has offered a silver lining after super fund returns saw the end of a five-month streak last month.
A survey of almost 6,000 fund members has identified weakening retirement confidence, particularly among those under 55 years of age, signalling an opportunity for super funds to better engage with members on their retirement journey.
The funds have confirmed the signing of a successor fund transfer deed, moving closer to creating a new $29 billion entity.
A number of measures, including super on Paid Parental Leave, funding to recover unpaid super, and frameworks to encourage investment in the energy transition, have been welcomed by the superannuation industry.
Add new comment