ASFA smacks down SOS campaign
The Association of Superannuation Funds of Australia (ASFA) has pointed out that the so-called Save our Super campaign being spruiked by media commentator Alan Kohler has been described as being aimed at enhancing the bottom line of News Limited publications.
In an article published by ASFA late last week, the organisation's director of research, Ross Clare, also questioned whether some of the goals outlined by the campaign were achievable in today's environment, particularly defined benefits superannuation.
"A problem with a goal of this type is that those days are gone, with changes mostly for the better," Clare's article said. "Superannuation is now an entitlement for practically all employees.
"Basically the Save our Super campaign, based on the information published to date, is poorly researched both in regard to its criticism of current arrangements and with its alternative proposals being extremely under-developed," it said.
The article said that while the Save our Super campaign criticised group insurance arrangements in Australia on the grounds that they deliver investment returns that are too low and incur costs that are too high, recent data showed that neither assertion was correct.
It said average returns for workplace superannuation funds had bounced back, while recent Organisation for Economic Cooperation and Development (OECD) research had pointed to higher operating costs for countries with defined contribution schemes.
The ASFA article concludes on the note that the Australian superannuation system is admired throughout the world for its universal coverage, its economic affordability, and its substantial favourable impact on retirement savings and the standard of living in retirement.
"This should be recognised, rather than going down the path of pushing products that are not suitable or equitable for the large majority of the Australian population," it said.
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