POWERED BY MOMENTUM MEDIA
Make super prominent in financial literacy says ASFA
The Australian Securities and Investments Commission (ASIC) has been told it is an appropriate time for superannuation to have a more prominent place in the National Financial Literacy Strategy.
The Association of Superannuation Funds of Australia (ASFA) has used a submission to ASIC on the strategy to suggest that the focus on superannuation be inclusive of both the pre and post-retirement elements of superannuation.
“Additionally, the role that superannuation can play in providing personal insurance throughout an individual’s lifetime should be advanced,” the ASFA submission said.
It said a constant challenge confronting both individuals and the industry alike related to continued low levels of engagement and understanding of superannuation in the community.
“While ASIC’s efforts in this area in the past are to be commended, the proposed strategy that is going to be in place for a very long period out to ten years needs an increased focus on superannuation and retirement in our view,” the ASFA submission said.
It said the age at which Australians became eligible for the age pension had started increasing in 2017 and it was likely the impacts would become apparent in future years with individuals requiring additional guidance.
The ASFA submission said the organisation supported the concept of priority audiences and suggested that the importance of compounding returns in superannuation and its positive impact on retirement benefits meant that young people should be added as a category.
“At the other end of the age spectrum, we welcome ASIC’s recent efforts to better understand the financial capability of seniors through its commissioned research and support further attention to this audience in the 2018 strategy as well,” it said.
Recommended for you
In its pre-election policy document, the FSC highlighted 15 priority reforms, with superannuation featuring prominently, urging both major parties to avoid changing super taxes without a comprehensive tax review.
The Grattan Institute has labelled the Australian super system as “too complicated” and has proposed a three-pronged reform strategy to simplify superannuation in retirement.
Super funds delivered a strong 2024 result, with the median growth fund returning 11.4 per cent, driven by strong international sharemarket performance, new data has shown.
Australian Ethical has seen FUM growth of 27 per cent in the financial year to date.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
36.43 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
35.08 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.72 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
27.64 3 y p.a(%)
