Retirement income adequacy needs to be modelled on consumption needs as opposed to subsidising a percentage-of-salary model for all workers, AustralianSuper believes.
The superannuation fund said in its submission to the Government’s Retirement Income Review that the percentage-of-salary model led to low income earners aspiring to earn less than their model wages, while high income earners would seek taxpayer subsidies for a percentage of their high income being enjoyed in retirement which was inequitable.
“The taxpayer burden in super needs to be seen through the lens of minimum provision to support retirement objectives, rather than relative to wealth during employment,” it said.
The super fund said it supported a budgetary standard (Association of Superannuation funds of Australia Comfortable standards) over a replacement rate scenario as:
Advantages of budgetary standards were:
AMP’s strong 2024–25 returns were anything but a fluke – they were the product of a carefully recalibrated investment strategy that began several years ago, when the fund first became truly cognisant of its shortcomings.
ASIC is “considering what options” it has to hold super trustees to account for including the failed schemes on their platforms, according to its deputy chair.
Vanguard Super has reported strong returns across most of its investment options, attributed to a “low-cost, index-based approach”.
The fund has achieved double-digit returns amid market volatility, reinforcing the value of long-term investment strategies for its members.