Superannuation pool helped buffer GFC - ASFA

Australia's large pool of superannuation savings helped keep the local economy on course through the global financial crisis by becoming the main source of equity finance when debt financing became unaffordable, according to new research released by the Association of Superannuation Funds of Australia (ASFA).

The release of the research was timed to coincide with celebrations around the 20th anniversary of the Superannuation Guarantee, with ASFA chief executive, Pauline Vamos, claiming it was proof that the superannuation savings pool was the ballast of the Australian economy.

The research, conducted by Allen Consulting Group, not only claimed that the superannuation savings pool had provided stability through the GFC, but said it would continue to do so through the current period of market uncertainty.

Vamos also pointed to the research findings as confirming the value of lifting the superannuation guarantee from its current level of 9 per cent to 12 per cent.

"The Allen research provides strong support that a move from 9 to 12 per cent would be not only good for the retirement futures of current workers, but would also have no adverse effect on employers," she said.

Vamos said the modelling shows such a reform would lead to a 0.33 per cent increase in real gross domestic product by 2025, compared to a 'no reform' scenario.

She acknowledged the report also indicated that employer costs would be increased in the short-term, but added that the impact in any given year would be, at most, 0.25 or 0.5 per cent of wages - equating to $250 to $500 for a small employer with a wages bill of $100,000.