POWERED BY MOMENTUM MEDIA
Super definition could be narrowly interpreted
The Financial System Inquiry's (FSI) proposed superannuation definition could be interpreted for super to only provide assistance up to the level of the Age Pension, the Association of Superannuation Funds of Australia (ASFA) believes.
In its submission to Treasury, ASFA proposed the objective of super to "ensure that all working Australians, save for their retirement throughout their working life to achieve an adequate level of income throughout retirement".
ASFA chief executive, Pauline Vamos, said "while we support the FSI proposal to ‘provide income in retirement to substitute or supplement the Age Pension', we believe that if narrowly interpreted, it could mean that superannuation only provides assistance up to the level of the Age Pension".
"This would not be an acceptable outcome for the community and would fall well short of delivering on the social goals of the system."
"Our alternative proposes that the system delivers adequate retirement outcomes with commensurate economic and social well-being, free from undue hardship," Vamos said.
"Achieving a comfortable retirement is the hope and aspiration of the bulk of Australians, and the achievement of this is fundamental to Australia's economic and social well-being".
Recommended for you
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.
Australian super funds notched a third consecutive year of strong returns, with the median balanced option delivering an estimated 10.1 per cent over the 2024-25 financial year, but an economist has warned that the rally may be harder to sustain as key risks gather pace.
AustralianSuper has reported a 9.52 per cent return for its Balanced super option for the 2024–25 financial year, as markets delivered another year of strong performance despite the complex investing environment.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom 465 Calder Road Calder
99.46 3 y p.a(%)
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
78.55 3 y p.a(%)
4
BetaShares Crypto Innovators ETF
50.39 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
47.50 3 y p.a(%)
