Retirement income adequacy needs to be modelled on consumption needs as opposed to subsidising a percentage-of-salary model for all workers, AustralianSuper believes.
The superannuation fund said in its submission to the Government’s Retirement Income Review that the percentage-of-salary model led to low income earners aspiring to earn less than their model wages, while high income earners would seek taxpayer subsidies for a percentage of their high income being enjoyed in retirement which was inequitable.
“The taxpayer burden in super needs to be seen through the lens of minimum provision to support retirement objectives, rather than relative to wealth during employment,” it said.
The super fund said it supported a budgetary standard (Association of Superannuation funds of Australia Comfortable standards) over a replacement rate scenario as:
Advantages of budgetary standards were:
The central bank has announced its latest rate decision amid stubborn inflation and increasing geopolitical tension.
Aware Super has outlined its systematic approach to corporate engagement as institutional investors increasingly assert their influence on company boards and take on an active stewardship role.
The country’s second-largest super fund has completed its fourth SFT this past financial year and welcomes almost 5,000 new members.
The corporate fund has announced it is seeking a suitable merger partner as the number of corporate super funds in Australia continues to dwindle.
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