Australia running second on pensions
Australia's superannuation regime may be the envy of the world, but it has failed to top a new global pension index and has had to settle for second.
The inaugural Melbourne Mercer Global Pension Index, produced by the Melbourne Centre for Financial Services and Mercer, gave the top ranking to the Netherlands, with 76.1 out of a maximum of 100, followed by Australia with 74 and Sweden with 73.5.
Commenting on the index outcome, Mercer Worldwide Partner on Retirement Risk David Knox said with the Australian superannuation system currently under the spotlight of the Henry and Cooper Reviews, the index represented a timely reminder that while the system had many good features, there was still much that could be done to improve its adequacy.
He pointed out that no country on the index had been classed as having an 'A-grade' system, which entailed registering a score of more than 80.
"The fact that no country achieved an A-grade classification confirms that no one system is perfect or currently robust enough to withstand the growing challenges of supporting an ageing population," Knox said.
"The best arrangements for a particular country will depend upon its individual social, economic, political, cultural and historical context," he said. "However, governments can learn lessons to help them better prepare for demographic change by looking at other retirement income systems."
AUTHOR
Mike Taylor
Recommended for you
ASIC’s enforcement action is having an active start to the new financial year, banning a former Queensland financial adviser for 10 years in relation to fees for no service conduct.
ASIC has confirmed the industry funding levy for the 2024–25 financial year, and how much licensees can expect to pay.
Australian licensees are expected to make greater use of custom model portfolios for their clients, according to State Street Investment Management, following in the footsteps of US peers.
Adviser Ratings has argued that it’s time for more advisers to utilise digital engagement tools available to them as a disconnect grows between consumers seeking advice from finfluencers and from professionals.
