tag:theconversation.com,2011:/us/topics/superannuation-system-45747/articlessuperannuation system – The Conversation2024-01-28T19:03:51Ztag:theconversation.com,2011:article/2179222024-01-28T19:03:51Z2024-01-28T19:03:51ZAfter a lifetime studying superannuation, here are 5 things I wish I knew earlier<figure><img src="https://images.theconversation.com/files/565034/original/file-20231211-23-sqk7f.jpg?ixlib=rb-1.1.0&rect=0%2C0%2C5366%2C3017&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/adult-hipster-son-old-senior-father-2022314720">Shutterstock</a></span></figcaption></figure><p>Amassing the wealth needed to support retirement by regular saving is a monumental test of personal planning and discipline. Fortunately for most Australian workers, the superannuation system can help. </p>
<p>Superannuation uses the carrot of tax incentives, and the sticks of compulsion and limited access, to make us save for retirement. </p>
<p>There are benefits to paying timely attention to your super early in your working life to get the most from this publicly mandated form of financial self-discipline. </p>
<p>I’ve been researching and thinking about superannuation for most of my career. Here’s what I wish I knew at the beginning of my working life.</p>
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Read more:
<a href="https://theconversation.com/women-and-low-income-earners-miss-out-in-a-superannuation-system-most-australians-think-is-unfair-207633">Women and low-income earners miss out in a superannuation system most Australians think is unfair</a>
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<h2>1. Check you’re actually getting paid super</h2>
<p>First, make sure you are getting your dues. </p>
<p>If you are working, your employer must contribute <a href="https://www.ato.gov.au/businesses-and-organisations/super-for-employers/paying-super-contributions/how-much-super-to-pay">11% of your earnings</a> into your superannuation account. By July 2025 the rate will increase to 12%. </p>
<p>This mandatory payment (the “<a href="https://www.ato.gov.au/tax-rates-and-codes/key-superannuation-rates-and-thresholds/super-guarantee">superannuation guarantee</a>”) may look like yet another tax but it is an important part of your earnings (would you take an 11% pay cut?). </p>
<p>It is worth checking on, and worth <a href="https://www.ato.gov.au/calculators-and-tools/super-report-unpaid-super-contributions-from-my-employer">reporting</a> if it is not being paid. </p>
<p>The Australian Tax Office <a href="https://oia.pmc.gov.au/sites/default/files/posts/2023/05/Impact%20Analysis%20-%20Unpaid%20Superannuation%20Guarantee%20package.pdf">estimates</a> there is a gap between the superannuation employers should pay and what they do pay of around 5% (or $A3.3 billion) every year.</p>
<p>Failing to pay is <a href="https://oia.pmc.gov.au/sites/default/files/posts/2023/05/Impact%20Analysis%20-%20Unpaid%20Superannuation%20Guarantee%20package.pdf">more common</a> among the accommodation, food service and construction industries, as well as small businesses.</p>
<p>Don’t take your payslip at face value; cross-check your super account balance and the annual statement from your fund.</p>
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<a href="https://images.theconversation.com/files/565036/original/file-20231211-19-glzd44.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="A woman checks a computer and a piece of paper closely." src="https://images.theconversation.com/files/565036/original/file-20231211-19-glzd44.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/565036/original/file-20231211-19-glzd44.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/565036/original/file-20231211-19-glzd44.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/565036/original/file-20231211-19-glzd44.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/565036/original/file-20231211-19-glzd44.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/565036/original/file-20231211-19-glzd44.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/565036/original/file-20231211-19-glzd44.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">Cross-check your super account balance and the annual statement from your fund.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/young-latin-business-woman-manager-accounting-2257912259">Shutterstock</a></span>
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<h2>2. Have just one super account</h2>
<p>Don’t make personal donations to the finance sector by having more than one superannuation account.</p>
<p>Two super accounts mean you are donating unnecessary administration fees, possibly redundant insurance premiums and suffering two times the confusion to manage your accounts. </p>
<p>The superannuation sector does not need your charity. If you have more than one super account, please consolidate them into just one today. You can do that <a href="https://moneysmart.gov.au/how-super-works/consolidating-super-funds">relatively easily</a>. </p>
<h2>3. Be patient, and appreciate the power of compound interest</h2>
<p>If you’re young now, retirement may feel a very distant problem not worth worrying about until later. But in a few decades you’re probably going to appreciate the way superannuation works. </p>
<p>As a person closing in on retirement, I admit I had no idea in my 20s how much my future, and the futures of those close to me, would depend on my superannuation savings.</p>
<p>Now I get it! <a href="https://www.nber.org/papers/w27459">Research</a> <a href="https://economics.mit.edu/sites/default/files/publications/pandp.20221022.pdf">shows</a> the strict rules preventing us from withdrawing superannuation earlier are definitely costly to some people in preventing them from spending on things they really need. For many, however, it stops them spending on things that, in retrospect, they would rate as less important.</p>
<p>But each dollar we contribute in our 30s is worth around three times the dollars we contribute in our 50s. This is because of the advantages of time and <a href="https://moneysmart.gov.au/saving/compound-interest">compound interest</a> (which is where you earn interest not just on the money initially invested, but on the interest as well; it’s where you earn “interest on your interest”). </p>
<p>For some, adding extra “voluntary” savings can build up retirement savings as a buffer against the periods of unemployment, disability or carer’s leave that most of us experience at some stage. </p>
<h2>4. Count your blessings</h2>
<p>If you are building superannuation savings, try to remember you’re among the lucky ones.</p>
<p>The benefits of super aren’t available to those who can’t work much (or at all). They face a more precarious reliance on public safety nets, like the Age Pension.</p>
<p>So aim to maintain your earning capacity, and pay particular attention to staying employable if you take breaks from work. </p>
<p>What’s more, superannuation savings are invested by (usually) skilled professionals at rates of return hard for individual investors to achieve outside the system. </p>
<p>Many larger superannuation funds offer members types of investments – such as infrastructure projects and commodities – that retail investors can’t access. </p>
<p>The Australian Prudential Regulation Authority (APRA) also <a href="https://www.apra.gov.au/industries/superannuation">checks</a> on large funds’ investment strategies and performance. </p>
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<a href="https://images.theconversation.com/files/565039/original/file-20231211-22-kfo8f9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="A woman holds her baby while walking in the park." src="https://images.theconversation.com/files/565039/original/file-20231211-22-kfo8f9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/565039/original/file-20231211-22-kfo8f9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/565039/original/file-20231211-22-kfo8f9.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/565039/original/file-20231211-22-kfo8f9.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/565039/original/file-20231211-22-kfo8f9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=502&fit=crop&dpr=1 754w, https://images.theconversation.com/files/565039/original/file-20231211-22-kfo8f9.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=502&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/565039/original/file-20231211-22-kfo8f9.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=502&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">Pay attention to staying employable if you take breaks from work.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/mother-holds-her-daughter-arms-she-2263449955">Shutterstock</a></span>
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<h2>5. Tough decisions lie ahead</h2>
<p>The really hard work is ahead of you. The saving or “accumulation” phase of superannuation is mainly automatic for most workers. Even a series of non-decisions (defaults) will usually achieve a satisfactory outcome. A little intelligent activity will do even better. </p>
<p>However, at retirement we face the challenge of making that accumulated wealth cover our needs and wants over an uncertain number of remaining years. We also face variable returns on investments, a likely need for aged care and, in many cases, declining cognitive capacity. </p>
<p>It’s helpful to frame your early thinking about superannuation as a means to support these critical decades of consumption in later life.</p>
<p>At any age, when we review our financial management and think about what we wish we had known in the past, we should be realistic. Careful and conscientious people still make mistakes, procrastinate and suffer from bad luck. So if your super isn’t where you had hoped it would be by now, don’t beat yourself up about it. </p>
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Read more:
<a href="https://theconversation.com/age-pension-cost-to-ease-by-2060s-but-super-tax-breaks-to-swell-intergenerational-report-212012">Age pension cost to ease by 2060s but super tax breaks to swell: Intergenerational report</a>
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<img src="https://counter.theconversation.com/content/217922/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Susan Thorp is a member of UniSuper. She receives and has received research funding from the Australian Research Council, the Australian Securities and Investments Commission, the TIAA Institute (USA), and UniSuper and Cbus Superannuation funds via ARC Linkage Grants. Thorp was previously Professor of Finance and Superannuation at UTS, a position that was partly funded by Sydney Financial Forum (Colonial First State Global Asset Management), the NSW Government, the Association of Superannuation Funds of Australia (ASFA), the Industry Superannuation Network (ISN), and the Paul Woolley Centre for the Study of Capital Market Dysfunctionality, UTS. She is an Associate Investigator for the ARC Centre of Excellence in Population Ageing Research (CEPAR), a member of the OECD-International Network on Financial Education Research Committee, the Steering Committee of the Melbourne-Mercer Global Pensions Index, the Australian Securities and Investments Commission (ASIC) Consultative Committee, the Board of New College (UNSW) and the Research Committee of Super Consumers Australia, a not-for-profit advocacy organisation for Australian pension plan participants.</span></em></p>As a person now closing in on retirement, I admit I had no idea in my 20s how much my future, and the futures of those close to me, would depend on my superannuation savings.Susan Thorp, Professor of Finance, University of SydneyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2019502023-04-04T03:01:19Z2023-04-04T03:01:19ZShould I put more money into my super? What are the benefits and can I take it out before retirement if I need it?<figure><img src="https://images.theconversation.com/files/515682/original/file-20230316-255-780950.jpg?ixlib=rb-1.1.0&rect=0%2C0%2C5511%2C3663&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Sutterstock</span></span></figcaption></figure><p>Superannuation is never far from the headlines lately, with the government recently calling for <a href="https://treasury.gov.au/consultation/c2023-361383">views</a> from the public on what the objective of super should be. </p>
<p>The basic idea behind super is you set aside a portion of your pay over your working life, so you can build up a nest egg to see you through your retirement years. </p>
<p>But what if you’re worried you might not have enough super by the time you retire? Yes, you could top up your super now and watch the nest egg grow through the magic of <a href="https://moneysmart.gov.au/saving/compound-interest">compound returns</a> – but what are the downsides?</p>
<p>If you’re considering putting more money into your super, and want to know more about how the whole system works, here are the basics.</p>
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Read more:
<a href="https://theconversation.com/tax-free-super-for-the-super-rich-is-a-bad-deal-for-the-rest-of-us-and-morrison-said-it-first-200706">Tax-free super for the super rich is a bad deal for the rest of us – and Morrison said it first</a>
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<h2>What are the rules about putting more money into my super?</h2>
<p>First, make sure you know where your superannuation actually is and how much you’ve got so far. This <a href="https://www.ato.gov.au/forms/searching-for-lost-super/">page</a> from the Australian Tax Office explains how to search for any lost super.</p>
<p>The next thing to know is there are <a href="https://www.ato.gov.au/individuals/super/in-detail/growing-your-super/super-contributions---too-much-can-mean-extra-tax/?page=2#Understanding_contribution_caps">limits</a> to how much you can contribute into superannuation. </p>
<p>There are two types of super contributions you can make.</p>
<p>The first category is called “<a href="https://moneysmart.gov.au/grow-your-super/super-contributions">concessional contributions</a>”. These are taxed at 15%, which may be lower than the tax you’d otherwise have to pay on that money. So making these super top-ups can not only grow your nest egg, but save you tax.</p>
<p>The amount of concessional contributions you can make is A$27,500 per annum. That figure includes all the super your employer puts in your super account and any extra contributions you make under a salary sacrifice scheme or where you are claiming an income tax deduction.</p>
<p>The second category, known as “non-concessional contributions”, means money you pay into your super <em>without</em> claiming a tax deduction. This could be, for example, money from savings, an inheritance or a lottery win.</p>
<p>There is a limit of $330,000 over three years (or $110,000 per year), for these contributions.</p>
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<a href="https://images.theconversation.com/files/515690/original/file-20230316-26-zbiobu.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="A man looks at a computer with concern." src="https://images.theconversation.com/files/515690/original/file-20230316-26-zbiobu.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/515690/original/file-20230316-26-zbiobu.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/515690/original/file-20230316-26-zbiobu.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/515690/original/file-20230316-26-zbiobu.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/515690/original/file-20230316-26-zbiobu.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/515690/original/file-20230316-26-zbiobu.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/515690/original/file-20230316-26-zbiobu.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">Do you know where your super is?</span>
<span class="attribution"><a class="source" href="https://unsplash.com/photos/4-EeTnaC1S4">Photo by Wes Hicks on Unsplash</a>, <a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></span>
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<h2>What are the benefits of topping up my super?</h2>
<p>Two words: compound returns.</p>
<p>Compound returns are where you earn returns not only on the original investment you put in, but also on any returns on that investment. As the government’s <a href="https://moneysmart.gov.au/saving/compound-interest">Moneysmart</a> website puts it, “you get interest on your interest”.</p>
<p>Over the years, this means you could earn a lot more than you would if you didn’t top up your super. </p>
<p>How much more? Well, it depends on the investment return and fees of your fund.</p>
<p>But as an example: thanks to compound returns, putting an extra $100 per month into your super from age 30 could <a href="https://www.calc.help/industrysuper/add-extra-to-your-super">mean you retire</a> with an extra $65,000 in your account (here, I’ve assumed investment returns of 7.5%, accumulation inflation of 4% and salary inflation of 4%).</p>
<p>And the longer it is there, the more it will grow – so starting top-ups early might pay off. </p>
<p>This is particularly important for <a href="https://theconversation.com/spirals-and-circles-snakes-and-ladders-why-womens-super-is-complex-103763">women</a>, whose super balances may look a bit feeble if they take parental leave or cut their hours while raising a family.</p>
<p>Then there’s the tax benefits of super top-ups. If you would normally pay a net tax rate higher than 15% on investments such as shares, your money will grow more quickly inside superannuation than shares.</p>
<p>You may also be eligible for government co-contributions that add to your balance if you make a non-concessional contribution during the year and your income is less than $57,016. </p>
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<a href="https://images.theconversation.com/files/517335/original/file-20230324-20-9bg5cv.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Three people look at their screens." src="https://images.theconversation.com/files/517335/original/file-20230324-20-9bg5cv.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/517335/original/file-20230324-20-9bg5cv.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/517335/original/file-20230324-20-9bg5cv.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/517335/original/file-20230324-20-9bg5cv.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/517335/original/file-20230324-20-9bg5cv.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/517335/original/file-20230324-20-9bg5cv.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/517335/original/file-20230324-20-9bg5cv.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">Starting top-ups early might pay off, so don’t ignore super until you are close to retirement.</span>
<span class="attribution"><a class="source" href="https://www.pexels.com/photo/young-female-friends-using-mobile-and-laptop-in-modern-cafe-4350214/">Photo by Ketut Subiyanto/Pexels</a>, <a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></span>
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<h2>So what’s the downside? Can I access my superannuation before retirement?</h2>
<p>Basically, no. You must meet a “<a href="https://www.ato.gov.au/individuals/super/in-detail/withdrawing-and-using-your-super/withdrawing-your-super-and-paying-tax/?page=2#Conditionsofrelease">condition of release</a>” before being able to access your superannuation.</p>
<p>The most common is retirement, defined as reaching the age of 65 or leaving work after reaching “preservation age” (which is 60 for anyone born after July, 1964).</p>
<p>There are some <a href="https://www.ato.gov.au/Individuals/Super/Withdrawing-and-using-your-super/Early-access-to-your-super/">special circumstances</a> where you may be able to access your superannuation early.</p>
<p>These are very narrow, and include serious financial hardship or necessary medical treatment that cannot be funded any other way. </p>
<p>Death or terminal illness also qualify for release. </p>
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Read more:
<a href="https://theconversation.com/should-i-pay-off-the-mortgage-asap-or-top-up-my-superannuation-4-questions-to-ask-yourself-170470">Should I pay off the mortgage ASAP or top up my superannuation? 4 questions to ask yourself</a>
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<h2>But what if I need a deposit for a house?</h2>
<p>This is a dilemma for non home-owners. After compulsory superannuation guarantee deductions and HECS-HELP, it may be hard to save a deposit.</p>
<p>One of the few circumstances where you access your superannuation early is through the <a href="https://www.ato.gov.au/individuals/super/withdrawing-and-using-your-super/first-home-super-saver-scheme/">First Home Super Savers Scheme</a>. </p>
<p>If you make voluntary contributions, you may be able to withdraw these contributions for a home deposit. </p>
<p>However, this scheme is very tightly regulated. You can read more about the rules for this scheme <a href="https://www.ato.gov.au/individuals/super/withdrawing-and-using-your-super/first-home-super-saver-scheme/">here</a>.</p>
<h2>So… should I put more money into my super?</h2>
<p>It depends. If you do, make sure you understand you will not be able to access that money until retirement.</p>
<p>If you own your home (or intend to rent until retirement) you may want to put more into superannuation while you can afford it, knowing it is contributing to a secure retirement. </p>
<p>But if home ownership is your goal, you should think carefully about choosing between superannuation and saving for a home deposit.</p>
<p><em>Note: the contribution caps and rates used in this article are for the year ending June 30, 2023.</em></p><img src="https://counter.theconversation.com/content/201950/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Helen Hodgson has received funding from the ARC, AHURI and CPA Australia. Helen is the Chair of the Social Policy Committee and a Director of the National Foundation for Australian Women (NFAW) and on the Gender and Career Progression Committee of CPA Australia (WA Division). Helen was a Member of the WA Legislative Council in WA from 1997 to 2001, elected as an Australian Democrat. She is not a current member of any political party. She is a Registered Tax Agent and a member of the SMSF Association, CPA Australia and The Tax Institute.</span></em></p>If you’re considering putting more money into your super, and want to know more about how the whole system works, here are the basics.Helen Hodgson, Professor, Curtin Law School and Curtin Business School, Curtin UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1062372018-11-06T19:14:23Z2018-11-06T19:14:23ZWhy we should worry less about retirement - and leave super at 9.5%<figure><img src="https://images.theconversation.com/files/244054/original/file-20181106-74754-18c9lhn.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Most retirees are financially secure. Many earn more than they did while working, the Grattan Institute finds.</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>It’s conventional wisdom that Australians don’t save enough for retirement. Most workers themselves <a href="http://csrm.cass.anu.edu.au/sites/default/files/docs/ANUPoll-ageing-money-feb-2016%257B%255C_%257D0.pdf">think</a> they won’t have enough to retire on, and their concerns are <a href="http://nabnews.efront-flare.com.au/wp-content/uploads/2017/08/MLCWealth-%2520Sentiment-Survey-Q1-2017.pdf">rising</a>. </p>
<p>But the conventional wisdom is wrong.</p>
<p>Our new report, <a href="https://grattan.edu.au/report/money-in-retirement/">Money In Retirement: More Than Enough</a> shows that most people who are actually retired <a href="https://www.mebank.com.au/getmedia/2046702b-39c0-457b-8950-80d75e716bcd/ME-s-14th-Household-Financial-Comfort-Report_August-2018.pdf">feel more comfortable financially</a> than the Australians younger than them who are still working. </p>
<p>Retirees of today tend to slow their spending as they age, tend to keep saving in retirement, and often leave an legacy almost as big as the nest egg they had on the day they retired.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/the-myth-of-the-ageing-crisis-168">The myth of the ageing 'crisis'</a>
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</em>
</p>
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<p>When surveyed today the retirees of the future might be worried about their retirement, but economic growth means they will almost certainly be on even higher incomes than retirees today.</p>
<p>These findings might seem surprising: they contradict the repeated messaging from the financial services industry that Australians won’t have enough for retirement. </p>
<p>But that industry’s claims are based on research that overlooks two important points.</p>
<h2>Retirees spend less over time</h2>
<p>Much of the research assumes that retirees need to save enough to enable their incomes to <a href="https://melbourneinstitute.unimelb.edu.au/downloads/working-paper-series/wp2014n05.pdf">keep</a> <a href="https://www.actuaries.asn.au/Library/Opinion/2015/ForRicherForPoorerRetirementIncomes2WEB.pdf">climbing</a> throughout their retirement in line with general wage growth. </p>
<p>Implicitly, it assumes that a retiree needs to spend 25% more at age 90 than at age 70, after accounting for inflation. </p>
<p>But our analysis shows that retired Australians tend to spend less over time, even those who have money to spare. </p>
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<p>Young retirees might chalk up frequent flyer points, but they do it less as they get older. </p>
<p>Spending tends to slow at around the age of 70, and falls rapidly after age 80, to just 84% of what was spent at retirement age.</p>
<p>Even the wealthiest retirees spend less as they age. At the other end of the scale, pensioners receive discounts on everything from car registration to rates.</p>
<p>Our research finds that retirees spend less over time on food, alcohol, tobacco, clothes, furnishings, transport and recreation.</p>
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<a href="https://images.theconversation.com/files/244008/original/file-20181105-74775-1cthlie.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/244008/original/file-20181105-74775-1cthlie.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/244008/original/file-20181105-74775-1cthlie.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=415&fit=crop&dpr=1 600w, https://images.theconversation.com/files/244008/original/file-20181105-74775-1cthlie.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=415&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/244008/original/file-20181105-74775-1cthlie.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=415&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/244008/original/file-20181105-74775-1cthlie.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=522&fit=crop&dpr=1 754w, https://images.theconversation.com/files/244008/original/file-20181105-74775-1cthlie.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=522&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/244008/original/file-20181105-74775-1cthlie.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=522&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<p>They spend more on health care as they age, but Medicare <a href="https://theconversation.com/young-australians-set-to-pay-for-government-policy-mistakes-35250">largely shields them</a> from the full costs. The modestly higher out-of-pocket costs they do pay are mainly due to <a href="https://theconversation.com/private-health-insurance-premium-increases-explained-in-14-charts-92825">rising premiums</a> for private health insurance.</p>
<p>Not only do most retirees not draw down their savings throughout retirement, many add to them. </p>
<p>Even among pensioners, one recent study found that the median (typical) pensioner <a href="http://journals.sagepub.com/doi/abs/10.1177/0312896216682577">still had 90%</a> of what he or she retired on after eight years.</p>
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<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/poor-and-rich-retirees-spend-about-the-same-64297">Poor and rich retirees spend about the same</a>
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</em>
</p>
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<p>This means that calculations about the adequacy of retirement savings ought to be based on whether they are enough to maintain buying power (at best) rather increase it in line with wage growth.</p>
<p>Many <a href="http://www.industrysuperaustralia.com/publications/reports/nearly-half-of-australians-will-not-have-a-comfortable-retirement/">prominent studies</a> also ignore non-super savings, which are <a href="https://theconversation.com/the-superannuation-myth-why-its-a-mistake-to-increase-contributions-to-12-of-earnings-66209">material</a>, especially for wealthier households. </p>
<p>They lead to misguided calls for ever-higher super contributions in order to ensure reach the point where super alone is enough to provide an adequate retirement income, even though many households will have income from other sources.</p>
<h2>Most will have enough super</h2>
<p>Our modelling shows that people starting work today will have adequate retirement incomes: workers of all income levels will retire on incomes at least 70% of their pre-retirement earnings – the so-called replacement benchmark used by the Organisation for Economic Cooperation and Development and the <a href="https://www.mercer.com.au/our-thinking/mmgpi.html#contactForm">Mercer Global Pension Index</a>. </p>
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<p>In fact the median (typical) worker can expect a retirement income of 91% of his or her pre-retirement income. </p>
<p>This means that many low-income Australians will actually get a <em>pay rise</em> on retirement.</p>
<p>Even workers in their 40s and 50s today – many of whom didn’t benefit from the present high rate of compulsory super contributions for their entire working lives – can expect a retirement income of about 70% of their pre-retirement incomes.</p>
<h2>So compulsory super can stay at 9.5%</h2>
<p>It means that that there is no obvious case to lift compulsory super contributions from 9.5% to 12% of salary as presently legislated.</p>
<p>Doing so might further boost retirement incomes (especially among those low and middle earners unable to compensate for the higher contributions by winding back other savings), but at the expense of providing lower incomes while working. </p>
<p>As the <a href="http://taxreview.treasury.gov.au/content/FinalReport.aspx?doc=html/publications/Papers/Final_Report_Part_2/chapter_a2-2.htm">Henry Tax Review</a> noted, higher compulsory super contributions are ultimately funded by lower wages than would have been the case, meaning lower living standards while in work.</p>
<p>As it happens, higher contributions would do little to change the retirement incomes of low and middle income Australians. Their extra superannuation income they provided would cut their age pension payments. </p>
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<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/the-superannuation-myth-why-its-a-mistake-to-increase-contributions-to-12-of-earnings-66209">The superannuation myth: why it's a mistake to increase contributions to 12% of earnings</a>
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<p>Higher compulsory contributions would also damage pensions in another way. </p>
<p>The age pension is <a href="https://www.dss.gov.au/our-responsibilities/seniors/benefits-payments/pension-rates">indexed to wage growth</a> which would be lower if employers diverted a steadily increasing proportion of their employee budget to super.</p>
<p>It means the most fervent opponents of a lift in compulsory super contributions from 9.5% to 12% ought be those people presently on the age pension.</p>
<p>The government ought to oppose it as well. Diverting more of what would have been wages to more lightly taxed super will strain its budget. Scrapping the proposed increase would <a href="https://insidestory.org.au/not-so-super/">save</a> it an impressive A$2 billion a year.</p>
<h2>We can find better ways to help retirees</h2>
<p>Even if governments did feel it necessary to boost retirement incomes, lifting compulsory super contributions would be one of the worst ways to do it. </p>
<p>Loosening the age pension assets test taper could boost retirement incomes of around 20% of retirees, climbing to more than 70% over time. It would cost the Budget just A$750 million a year – less than half the cost to it of the proposed increase in compulsory super.</p>
<p>The real priority - by far the biggest bang for the buck in alleviating poverty in retirement - should be boosting Commonwealth rent assistance by 40%, providing an extra $1,410 a year for retired singles and $1,330 for retired couples.</p>
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<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/renters-beware-how-the-pension-and-super-could-leave-you-behind-105840">Renters Beware: how the pension and super could leave you behind</a>
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<p>Senior Australians who rent privately are much more likely to <a href="https://theconversation.com/three-charts-on-poorer-australians-bearing-the-brunt-of-rising-housing-costs-87003">suffer financial stress</a> than homeowners. And renting will become more widespread as younger generations on low incomes find themselves less able to afford homes.</p>
<p>Australians have been told for decades that they’re not saving enough for retirement. Such claims are inconsistent with the facts. Most of today’s workers <a href="https://insidestory.org.au/the-reassuring-truth-about-retirement-incomes/.">can already expect a comfortable retirement</a>. Forcing them and future workers to save more money for retirement that they’ll never spend is simply a recipe for larger bequests.</p><img src="https://counter.theconversation.com/content/106237/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Grattan Institute began with contributions to its endowment of $15 million from each of the Federal and Victorian Governments, $4 million from BHP Billiton, and $1 million from NAB. In order to safeguard its independence, Grattan Institute’s board controls this endowment. The funds are invested and contribute to funding Grattan Institute's activities. Grattan Institute also receives funding from corporates, foundations, and individuals to support its general activities as disclosed on its website. </span></em></p><p class="fine-print"><em><span>John Daley and Jonathan Nolan do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Compelling Australians to put even more into super runs the risk of giving them a better standard of living in retirement than they had while working.Brendan Coates, Fellow, Grattan InstituteJohn Daley, Chief Executive Officer, Grattan InstituteJonathan Nolan, Associate, Grattan InstituteLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/973182018-05-29T19:51:39Z2018-05-29T19:51:39ZSuperannuation is still mired in the same old issues, and no one is going to fix your nest egg but you<figure><img src="https://images.theconversation.com/files/220723/original/file-20180529-80653-1n8eakb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">The best advice is still to keep track of your super yourself.</span> <span class="attribution"><span class="source">Africa Studio/Shutterstock.com</span></span></figcaption></figure><p>The Productivity Commission’s <a href="https://www.pc.gov.au/inquiries/current/superannuation/assessment/draft">latest report on superannuation</a> asks whether the current system is working for members – and answers <a href="https://theconversation.com/young-people-not-employers-should-choose-super-fund-productivity-commission-97329">firmly in the negative</a>.</p>
<p>The <a href="https://www.pc.gov.au/__data/assets/pdf_file/0017/228230/super-draft-cameos.pdf">report identifies</a> four factors that can chip away at super fund members’ retirement benefits: </p>
<ul>
<li>fees</li>
<li>rate of return</li>
<li>insurance</li>
<li>holding <a href="https://www.pc.gov.au/__data/assets/pdf_file/0017/228230/super-draft-cameos.pdf">multiple accounts</a> </li>
</ul>
<p>What is also clear from the evidence laid out in the report that the not-for-profit sector, including industry super funds, generally outperforms the retail sector. Generally they offer lower fees and higher returns, although there are some industry funds that rank among the lowest-performing.</p>
<p>Despite recent reforms such as the 2013 launch of MySuper, the superannuation system is still beset with the same problems of rising fees and patchy performance. And there is still no substitute for just hopping on the internet and proactively checking that your super is in the best possible hands. </p>
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<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/young-people-not-employers-should-choose-super-fund-productivity-commission-97329">Young people, not employers, should choose super fund: Productivity Commission</a>
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<p>The situation is made complex by the highly segmented nature of Australia’s superannuation system. Besides the public sector funds, the most significant sectors are the retail sector and the not-for-profit funds, including industry funds (see figure 1.5 <a href="https://www.pc.gov.au/__data/assets/pdf_file/0003/228171/superannuation-assessment-draft.pdf">here</a>). These sectors compete for as large a slice as possible of the overall pool. </p>
<p>Self-managed superannuation funds are also a rapidly growing sector of the market, however the regulatory framework applied to these funds has some significant differences to the rest of the market.</p>
<h2>Tracking your super</h2>
<p>Most employees have the right to choose their superannuation fund (<a href="http://kmo.ministers.treasury.gov.au/speech/008-2018/">although around one million don’t</a>), and if they don’t nominate a fund, employers will pay contributions into a default fund.</p>
<p>As the new report points out (see figure 1.2 <a href="https://www.pc.gov.au/__data/assets/pdf_file/0003/228171/superannuation-assessment-draft.pdf">here</a>), up to 40% of superannuation members hold multiple super accounts. In some cases this may be a deliberate choice – someone with a self-managed super fund may might, for example, choose to have their employer contributions paid into a conventional fund. But often multiple funds are a consequence of employees being enrolled into a new default fund instead of paying contributions into an existing fund.</p>
<p>A range of <a href="https://www.ato.gov.au/Individuals/Super/Keeping-track-of-your-super/">tools</a> is now available to help people consolidate their super, so as not to <a href="https://www.moneysmart.gov.au/superannuation-and-retirement/keeping-track-and-lost-super/consolidating-super-funds">lose any of their savings</a>. In the 2018 federal budget the government <a href="https://treasury.gov.au/consultation/c2018-t286292/">announced</a> that it would reduce the paperwork involved in this process by allowing the Australian Taxation Office to consolidate inactive super accounts with balances less than A$6,000.</p>
<h2>MySuper</h2>
<p>The primary aim of <a href="https://www.moneysmart.gov.au/superannuation-and-retirement/how-super-works/choosing-a-super-fund/mysuper">MySuper</a>, introduced in 2013, was to provide a <a href="https://static.treasury.gov.au/uploads/sites/1/2017/06/R2009-001_Final_Report_Part_2_Chapter_1.pdf">simple default product</a> that meets the needs of members who are not engaged with their superannuation. They have no entry fees, offer simpler insurance and services, and lower administration fees that are charged on a cost-recovery basis. </p>
<p>But although the effects of MySuper are generally positive, the 2013 reforms may also have contributed to the erosion of funds identified by the new review.</p>
<p>This report confirms (see chapter 3, p.127 <a href="https://www.pc.gov.au/__data/assets/pdf_file/0003/228171/superannuation-assessment-draft.pdf">here</a>) that super fund fees in Australia are among the highest in the OECD, and the upward pressure on fees continues. Just this month, the Commonwealth Bank announced that it would <a href="https://www.smh.com.au/money/super-and-retirement/cba-s-superannuation-sting-is-out-and-out-gouge-says-minister-20180523-p4zh23.html">pass the costs of regulation onto some superannuation products</a>. </p>
<p>One of the consequences of introducing the fee charging limitations for MySuper accounts was that the previous member protection standards that limited fees on low-balance accounts was <a href="https://www.legislation.gov.au/Details/F2013C00067">repealed</a>. In the 2018 federal budget the government <a href="https://treasury.gov.au/consultation/c2018-t286292/">announced</a> that fees would be capped in respect of certain low balance accounts. </p>
<p>MySuper products must provide also life insurance on an opt-out basis. Insurance in superannuation has also been under scrutiny, with <a href="http://www.abc.net.au/news/2017-03-17/casual-workers-life-insurance-claims/8361198">inappropriate or junk policies being included in superannuation</a>. The government has announced proposals to change this to an <a href="https://treasury.gov.au/consultation/c2018-t286292/">opt-in</a> system.</p>
<p>This report adds to the evidence that overall the <a href="https://theconversation.com/industry-super-funds-saved-from-us-style-ideology-51662">current structure of not-for-profit funds is serving members well</a>. Although it supports <a href="https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=s1088">proposals</a> to require the trustees of industry funds to increase the number of independent directors, the Productivity Commission highlights the need for a stronger focus on trustee skills and addressing conflicts of interest.</p>
<h2>Take responsibility for your super</h2>
<p>It is concerning that many of the problems identified by the new report are the same ones that arose in the <a href="http://fsi.gov.au/publications/final-report/">2014 Financial System Inquiry</a>, the <a href="https://treasury.gov.au/publication/super-system-review-final-report/">2015 Cooper Review</a>, and in the evidence to the <a href="https://theconversation.com/au/topics/financial-services-royal-commission-51154">Financial Services Royal Commission</a>. </p>
<p>Most of these issues raised have been part of the discussion for the past decade. The fact that they are still on the table shows a level of inertia in the system, and a reluctance by the industry to address its problems.</p>
<p>So how can we, as individuals, protect our retirement nest egg? The key is to engage with the superannuation system, and not just as we approach retirement. </p>
<p>Compare your super fund’s fees and returns with those of the best performing funds, and then choose accordingly. Reduce your fees and insurance premiums by consolidating your accounts, and make sure that any insurance in the fund meets your needs.</p>
<p>The difference at retirement is worth it – <a href="https://www.pc.gov.au/__data/assets/pdf_file/0006/228228/super-draft-infographic.pdf">up to A$407,000</a> for a 21-year-old by the time they finish their career.</p><img src="https://counter.theconversation.com/content/97318/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Helen Hodgson receives funding from AHURI and the ARC. Helen is a member of the Social Policy Committee and a Director of the National Foundation for Australian Women (NFAW), and is on the Tax and Superannuation Advisory Panel of ACOSS. Helen was a Member of the WA Legislative Council in WA from 1997 to 2001, elected as an Australian Democrat. She is not a current member of any political party. She is a Registered Tax Agent and a member of the SMSF Association; and holds a superannuation account with an industry fund. </span></em></p>Despite recent reforms, the superannuation system is still beset with problems such as high fees and patchy performance. You need to pay attention if you want to make sure your nest egg’s in the best hands.Helen Hodgson, Associate Professor, Curtin Law School and Curtin Business School, Curtin UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/860672017-11-09T05:04:43Z2017-11-09T05:04:43ZCould we nationalise the superannuation system even if we wanted to?<figure><img src="https://images.theconversation.com/files/193330/original/file-20171105-1055-5eu954.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">The Australian superannuation system was never meant to be privatised.</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>Two decades of reforms, reviews and inquiries <a href="https://flr.law.anu.edu.au/flr/article/accountability-regulatory-reform-australias-superannuation-industry-paradox">appear</a> to have better served the financial sector than the interests of super fund members. </p>
<p>At first glance <a href="http://www.apra.gov.au/Super/Publications/Documents/2017QSP201706.pdf">Australia’s 214 major superannuation funds</a> are performing well, giving a healthy 9.2% return on the A$1.4 trillion we have deposited with them. But there are issues with our publicly mandated but privately controlled superannuation system. </p>
<p>Admittedly, our current system provides a range of benefits - increasing retirement incomes, giving us plenty of choice between funds (in theory if not in practice), and investing in the Australian economy.</p>
<p>But the operating expenses for Australian funds <a href="https://grattan.edu.au/wp-content/uploads/2015/04/821-super-savings2.pdf">consistently and significantly outstrip</a> those in other OECD countries. Fees are high and there is little evidence that higher fees lead to better services. </p>
<p>In 2009 the <a href="http://www.aph.gov.au/binaries/senate/committee/corporations_ctte/fps/report/report.pdf">Inquiry into Financial Products and Services in Australia</a> recommended there be an annual check on the quality of advice. The only <a href="http://asic.gov.au/about-asic/media-centre/find-a-media-release/2012-releases/12-55mr-asic-releases-full-report-on-retirement-advice-shadow-shopping-research/">superannuation-related survey</a> that has been undertaken to date found that 39% of advice was poor and only 3% was good quality. No further surveys have been conducted. </p>
<p>Australians are forced to contribute to superannuation funds, without the right of exit, but they aren’t protected from high fees or bad investment strategies. A nationalised superannuation system, or one that combines private and public super funds, could simplify the system and reduce costs. </p>
<h2>Baked in problems</h2>
<p>Australia’s system wasn’t originally intended to be entirely privately-run, which has left us without many necessary protections (such as appropriate disclosure of fees and charges). </p>
<p>Australia was almost alone among OECD countries in reaching the 1980s with no national employment-related retirement income scheme. There had been <a href="https://archive.treasury.gov.au/documents/110/PDF/round4.pdf">at least ten attempts</a> to set one up between the 1890s to the 1970s. All failed to win support from employers, existing superannuation funds, life offices and state governments.</p>
<p>An additional attempt was made in the last Parliament of the Liberal government in 1972. The incoming Whitlam Labor government also tried to introduce a national superannuation scheme in 1973, establishing <a href="https://catalogue.nla.gov.au/Record/1826590">the Hancock inquiry</a>. </p>
<p>Consistent with its recommendations, the Hawke/Keating Labor government intended to move forward with a national scheme. However, against the backdrop of past nationalisation failures, recession, high inflation, a wage freeze, strikes, declining union membership, and the increasing discontinuation of superannuation products, the government instead privatised it. </p>
<p>Thus, the Hawke/Keating Labor government was a major winner of a privatised scheme gaining electoral support from a coalition of private interests. </p>
<p>Absent from this coalition were the fund members. There is <a href="https://www.taxandsuperaustralia.com.au/Documents/Governance/TRFL/Tax-Policy-Journal-2016.pdf">no evidence</a> of any consultation process with either the fund members themselves and/or any consumer representative groups prior to the development of our present, privatised regime.</p>
<p>The <a href="https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/BN/0910/ChronSuperannuation">Superannuation Guarantee scheme</a> introduced a minimum employer contribution to superannuation for most employees. This scheme was a windfall for the financial sector, as they received a guaranteed, trillion-dollar stream of superannuation contributions to look after with no exit rights for members. </p>
<p>The union movement would also appear to be a winner from privatisation. The privatised system allowed the unions to expand the number of their existing industry funds to earn more administration and investment-based fees. The 41 industry funds <a href="http://www.apra.gov.au/Super/Publications/Documents/2017QSP201706.pdf">currently hold</a> A$545.2 billion, compared to the A$587.8 billion held by the 128 for-profit retail funds.</p>
<p>It could be argued that the losers in this mandatory regime are the fund members who were marginalised from the outset. As it was originally intended to be a government-run system, many of the administrative processes necessary for an efficient and effective privatised system <a href="http://onlinelibrary.wiley.com/doi/10.1111/j.1835-2561.2011.00142.x/abstract">were originally absent</a>. </p>
<p>For example, there were no codified accounting, reporting and disclosure requirements. No mandatory requirements for the disclosure of fees and charges. No codified audit report requirements. And, for nearly a decade, the regulator did not have appropriate constitutional powers to enforce civil and criminal penalties against non-complying trustees. </p>
<p>Two-decades of reforms have remedied the constitutional, auditing and accounting issues. But significant issues remain, including limitations in the disclosure of fees and charges and the <a href="https://flr.law.anu.edu.au/flr/article/accountability-regulatory-reform-australias-superannuation-industry-paradox">related issue of conflicted payments</a>. </p>
<h2>Alternative super systems</h2>
<p>In theory, there are alternative superannuation models for Australia to consider. For example, there are nationalised schemes such as the government-run Canadian Pension Plan.</p>
<p>All of the funds from the Canadian Pension Plan are invested by Canada’s Pension Plan Investment Board, which operates with a <a href="http://www.cppib.com/en/who-we-are/our-mandate/">clear mandate</a> to maximise returns, without undue risk of loss. </p>
<p>Nationalising the superannuation industry in this way <a href="https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Significant_Reports/superctte/suprep02/index">appears to have benefits</a> - members would receive the same return for equal contributions, employers and employees would only have to deal with one fund, and the amount spent on running the fund (for example on administration, marketing) would be reduced. </p>
<p>There is also the option of adopting a combined system, as in <a href="http://www.pensionfundsonline.co.uk/content/country-profiles/norway/112">Norway</a>, which features both national and privately-run superannuation funds.</p>
<p>In reality however, given the coalition of vested interests that have forged Australia’s existing, publicly mandated, privatised system, only the voice of the members themselves can force an honest and open debate on this important issue.</p><img src="https://counter.theconversation.com/content/86067/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Suzanne Taylor does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>The Australian superannuation system was originally meant to be government-run, and so many necessary protections weren’t included.Suzanne Taylor, Lecturer/Co-Ordinator, Queensland University of TechnologyLicensed as Creative Commons – attribution, no derivatives.