Gerard Noonan explains why Australia’s superannuation scheme is a shining beacon amongst the world’s retirement schemes.
Australia’s super scheme is unlike any other in the world. Anticipating our ageing population and an unsustainable increase in pension payments, the Keating government introduced a scheme which required financial contributions from workers and employers. With generous tax concessions and 25 years under its belt, super funds are now worth over $1.4 trillion. Australians now have more money invested in managed funds per capita than any other economy.
That doesn’t mean there hasn’t been criticism. With the GFC still biting shares and Europe’s woes likely to contribute to a weakening market, many changes have been mooted by various quarters. Some are calling for more investment in local infrastructure while others are questioning whether there is an overinvestment in the sharemarket.
Gerard Noonan tells 3Q the reasons why super is well worth the investment.
Read Essential's ongoing research on the public response to Covid-19.Download this week's Report
Two Party Preferred:
In this week's report:
- Performance of Scott Morrison
- Performance of Anthony Albanese
- Preferred Prime Minister
- Federal Budget expectations
- Most important areas for increased funding
- Economy: Direct investment vs trickle-down approach
- Priority for the upcoming budget
- Indicators of whether the Australian economy is in a good or poor state