Super guarantee of 12pct a mistakeBY KERRIE SYDEE | TUESDAY, 4 OCT 2016 12:11PMAssuming that saving for retirement is synonymous with superannuation is a mistake according to the Grattan Institute. Related News |
Editor's Choice
Vanguard Super lowers fees
Vanguard Super is reducing its annual administration fees off the back of strong investment performance and its short time in the market.
Chief member officer leaves Insignia Financial
Insignia Financial is on the hunt for a new chief member officer for its superannuation business, confirming the departure of Anne Coyne.
Super for housing 'economically reckless': SMC
The Super Members Council (SMC) has warned that encouraging young Australians to use their superannuation for a house deposit could dramatically drive-up house prices and deplete their retirement savings.
Treasury shakes up foreign investing framework
Treasury is promising to make Australia a better investment hub for foreigners as it lays out comprehensive reforms to make the system "stronger, more streamlined, and more transparent".
Products
Featured Profile
Robert De Dominicis
CHIEF EXECUTIVE OFFICER
GBST HOLDINGS LIMITED
GBST HOLDINGS LIMITED
It was during a family sojourn to the seaside town of Pescara, Italy, Rob DeDominicis first laid eyes on what would become the harbinger of his future. Andrew McKean writes.
The conclusions drawn by the Grattan Institute in its recently released report How Households Save for Retirement are flawed.
The report is based on the Grattan Institute's analysis of four retirement income pillars.
And several of these retirement pillars do not reflect the real world of how people save for their retirement
The Grattan Institute has included the value of a person's home, their house contents and their vehicles in their retirement income pillars.
There are not many people who can say their house, their house contents or their vehicles are going to give them an income when they retire. So in the real world, I do not see how you can count the value of these as part of someone's retirement income pillars.
The Grattan Institute also includes in a person's wealth, a theoretical calculation for the net present value of any future pension they may get, which the government of the day may not even be able to afford to pay.
So once you remove these so called retirement income pillars, superannuation becomes a significant part of what is left.
So to make a policy decisions based on the view that superannuation is currently the least important part of Australia's retirement income system, is fraught with danger.