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
NovaPort Capital team calls it a day
The team at small caps manager NovaPort Capital have decided to hang up their boots.
Industry fund merger postponed
Mine Super and TWUSUPER have reported "significant progress" towards their merger, but it has been pushed back.
Fidelity shutters, delists funds
Fidelity International is terminating an international fixed interest strategy that failed to scale, as well as delisting a managed fund.
Super funds to solve the housing crisis?
Association of Superannuation Funds of Australia (ASFA) chief executive Mary Delahunty said at the Australian Shareholders' Association Conference yesterday that addressing the supply side of the housing crisis requires an infusion of private capital.
Products
Featured Profile
Matt Gaden
HEAD OF AUSTRALIA
JANUS HENDERSON INVESTORS (AUSTRALIA) LIMITED
JANUS HENDERSON INVESTORS (AUSTRALIA) LIMITED
Helping investors traverse financial markets and build their wealth during the peaks and troughs is Janus Henderson Investors head of Australia Matt Gaden's game plan. He tells Karren Vergara why in this long game of investing, active management wins.
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.