Industry Super Australia (ISA) welcomes the Federal Government's commitment to maximise efficiencies in Australia's compulsory superannuation system, ahead of the legislated increase in the super guarantee.
The Retirement Income Review provides an important opportunity for policy makers to use evidence and research-based inquiry to ensure the system is operating as efficiently as possible and in the best interests of members and retirees – but shouldn't come at the expense of existing reform priorities.
ISA Chief Executive Bernie Dean today welcomed the Federal Government's acknowledgement of compulsory superannuation as one of the key pillars of Australia's retirement income system.
With the superannuation guarantee legislated to increase to 12 per cent by 2025, ISA agrees with the Government that sensible, and evidence-based reform is needed to improve the efficiency of the compulsory savings system and ensure that members get even more out of every dollar they've been promised.
In particular, ISA welcomes the Review's intention to examine the distributional impacts across population and over time. This is an opportunity to address some of the inadequacies in our current system, where we see lower income and vulnerable workers, those with interrupted work patterns and in particular women, retire with significantly less super than other Australians.
While the Retirement Income Review will seek to address some of the key issues facing Australia and its increasingly ageing population - which ISA welcomes - work must continue on other key priorities including tackling underperformance, and ensuring workers are connected to a single, high-quality default account with good returns and low fees.
When Australia's superannuation system was first established more than 25 years ago, its purpose was to provide working Australians with some savings at retirement and to ease the burden on the age pension.
As the system has evolved, people's super has helped to ensure a better standard of living in retirement, which is especially important as we live longer. Now, nearly three decades later, we all have an obligation to ensure the system is working as efficiently as possible, and in the best interests of all Australians.
ISA welcomes the appointment of Mr Michael Callaghan AM PSM, Ms Carolyn Kay and Dr Deborah Ralston to lead this important work.
