Australia’s pension/super system drops on index

superannuation/pension/gig-economy/David-Knox/self-employed/parental-leave/

22 October 2018
| By Mike |
image
image
expand image

Australia’s superannuation and pension system has dropped to fourth place on the Melbourne Mercer Global Pension Index in what appears to be a reflection of the strengthening of European systems and the impact of the gig economy.

The index, released today, has seen the Netherlands take top spot followed by Denmark, while Finland has bumped Australia into third spot with the index author, Mercer Australia senior partner, Dr David Knox, referencing a growing tension between adequacy and sustainability in global pension systems.

Knox’s analysis said that it was not enough for a system to be sustainable or adequate.

“An emerging dimension to the debate about what constitutes a world class system is ‘coverage’ and the proportion of the adult population participating in the system,” he said. “In some countries, broad coverage has been successfully accomplished through compulsory workplace pension systems or, in some cases, auto-enrolment arrangements.”

“However, with changes in the way people are working around the world, we need to ensure these schemes include everyone so that the whole workforce is saving for the future. This includes contractors, self-employed, and anyone on any income support, be that parental leave, disability income or unemployed benefits,” Knox said.

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 3 weeks ago

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

2 months 3 weeks ago

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

4 months 3 weeks ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

1 week 3 days ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 2 days ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

3 weeks ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND