Australian superannuation funds are delivering the third best retirement savings system in the world, with the Association of Superannuation Funds of Australia (ASFA) warning that it is only “misleading analysis [leading] to sensationalist newspaper headlines” that suggest otherwise.
ASFA said that such headlines “only served to alarm Australians and detrimentally impact retirement outcomes”, saying that according to the 2017 Melbourne Mercer Global Pension Index only the Netherlands and Denmark have better systems.
“It is important to compare like with like when making fee comparisons,” ASFA said.
“For example, investing in government bonds may come with a lower fee, but Australian super funds achieve high returns from unlisted infrastructure, property and other investments and these cannot be obtained by investing in indexed funds.”
The group also said that fees for managing Australian super funds were comparable to those in other countries with high levels of investments in equities, pointing out since the introduction of MySuper and other reforms fees had fallen.
ASFA also emphasised that:
“Superannuation is working … it is important to get the facts straight, because not doing so simply reduces confidence in the system, disengages the community and leads to worse outcomes in retirement,” ASFA said.
BlackRock boss Larry Fink praised Australia’s superannuation system in his annual chairman’s letter.
The prudential regulator has announced it will publish new expenditure data of superannuation funds, providing details on expenses like advice, director remuneration, and payments to unions.
Affirming the UK’s growing attractiveness as an investment destination, a number of Australia’s largest investors recently joined the UK Foreign Secretary for an exclusive briefing in Canberra to discuss further opportunities for trade and growth.
The specialist superannuation law advisory practice is set to wind up, with managing partner Jonathan Steffanoni planning to bring a new offering to market.
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