ISN attacks CPA research
The Industry Super Network (ISN) has taken issue with a report published by CPA Australia suggesting the superannuation guarantee had given rise to an explosion in household debt over the past 20 years.
ISN chief executive David Whiteley claimed the CPA Australia report's methodology was flawed by linking increases in household debt to an increase in superannuation savings - something which ignored the fact that household debt had increased in almost every advanced economy irrespective of retirement income systems.
Further, he claimed the report overstated the rise in household debt to household assets (including super) by excluding the value of housing assets worth $4.2 trillion.
"The report flies in the face of clear evidence that home ownership significantly improves retirement outcomes," Whiteley said. "The report also ignores the broader benefits of the super system."
He said the super Guarantee would increase disposable income after retirement and reduce pressure on the age pension.
"When mature the superannuation system combined with the age pension will deliver replacement rates of around 80 percent of pre-retirement income for average earners, with super delivering 50 per cent more income than the full age pension alone," Whiteley said. "In respect to reducing reliance on the age pension, super has been a factor in reducing reliance on age pensions with the proportion of part-rate pensioners increasing from 31.9 per cent in 1999 to 40.2 per cent in 2011. Treasury has estimated as the system matures, part-rate pensioners will exceed full-rate pensioners by around 2035.
Recommended for you
Reserve Bank governor Michele Bullock has said the central bank sees private demand picking up over the next year, taking over from public demand.
One of Australia’s largest super funds has acquired an equity stake in the institutional investment advisory firm.
Passive investing is reshaping Australian equities, giving rise to a “no information trade” in which large-cap stocks swing sharply despite little or no fresh news.
RBA governor Michele Bullock warns of global trade risks as domestic inflation cools and employment remains near full capacity.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
215.17 3 y p.a(%)
2
Loftus Peak Global Disruption Fund Hedged
118.15 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
75.00 3 y p.a(%)
4
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
61.11 3 y p.a(%)
5
Global X Ultra Long Nasdaq 100 Complex ETF
60.93 3 y p.a(%)
