AIST rejects calls for cuts to SG

superannuation-trustees/global-financial-crisis/super-funds/cent/AIST/chief-executive/

8 December 2008
| By Mike Taylor |
image
image
expand image

Fiona Reynolds

A key sector of the superannuation funds industry has rejected a call by a group of economists for a temporary cut to the superannuation guarantee rate from its current 9 per cent to just 6 per cent.

The chief executive of the Australian Institute of Superannuation Trustees, Fiona Reynolds, claimed such a cut was likely to do more harm than good by reducing the pool of national savings and lowering superannuation balances.

“At a time when the average superannuation balance has been hit hard by falling markets and super funds have been called upon to invest in infrastructure and sustainability initiatives, calls for a reduction in the super guarantee are short-sighted and retrograde,” she said.

Reynolds said Australia’s compulsory superannuation system was the envy of the world and the pool of national savings it had generated was one of the reasons the nation was able to weather the global financial crisis better than most.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months ago

Entireti has unveiled the new name for the AMP financial advice businesses that it acquired last year....

4 weeks 1 day ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

3 weeks ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

1 week 6 days ago

TOP PERFORMING FUNDS