Call for doubling of the super guarantee
The superannuation guarantee (SG) needs to have a drastic increase to 18 per cent for the system to become adequate, according to a financial services executive.
Speaking at a media briefing yesterday, chief executive officer of Australian Unity Investments David Bryant said the debate about gradually increasing the SG to 12 per cent over the next few years "is not going to get us anywhere".
"The reality is that that number needs to be 18 per cent for two reasons," Bryant said.
"At effectively the 20-year anniversary of the implementation of compulsory superannuation, what we have to try and do is find an opportunity to actually do again what we already did — [this time] make 9 per cent into 18 per cent," he added.
"It was one of those moments of rare enlightenment and cooperation between the unions, business, and the government and we need that degree of collaboration again."
Only one sector would be able to resolve the capital investment issues facing Australia in healthcare, ageing, provision of services and adequacy in retirement — and that was the superannuation system, Bryant said.
"And the superannuation system is inadequate — as proud as we want to feel about what we've managed to achieve over the last 20 years, it is grossly inadequate for what it needs to do, let alone for what it will need to do over the next 12 years and beyond," he said.
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