POWERED BY MOMENTUM MEDIA
Call for 18 per cent SG
A financial services executive has called for the superannuation guarantee (SG) to be doubled to 18 per cent or the system will remain inadequate.
Chief executive officer of Australian Unity Investments, David Bryant, told a media briefing yesterday that the gradual increase of SG to 12 per cent would fail to achieve adequacy in retirement for Australians.
"The reality is that that number needs to be 18 per cent for two reasons," Bryant said.
"At effectively the 20-year anniversary of the implementation of compulsory superannuation, what we have to try and do is find an opportunity to actually do again what we already did — [this time] make 9 per cent into 18 per cent," he added.
"It was one of those moments of rare enlightenment and cooperation between the unions, business, and the government and we need that degree of collaboration again."
The only sector able to resolve the capital investment issues facing Australia in healthcare, ageing, provision of services and adequacy in retirement is the superannuation system, Bryant said.
"And the superannuation system is inadequate — as proud as we want to feel about what we've managed to achieve over the last 20 years, it is grossly inadequate for what it needs to do, let alone for what it will need to do over the next 12 years and beyond," he said.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.
Specific valuation decisions made by the $88 billion fund at the beginning of the pandemic were “not adequate for the deteriorating market conditions”, according to the prudential regulator.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
