Australia’s compulsory superannuation system is delivering real relief to both the federal and household budgets and insulating retirees and the country against economic instability, new research from peak superannuation body ASFA shows.
Super has boosted household savings by more than $500 billion, is reducing the government’s reliance on age pension payments, and provides a stable pool of capital for local investment, job creation and infrastructure – supporting economic growth and lowering the cost of living over the long term.
“As we look to the upcoming election, this research confirms that our superannuation system is easing the strain on the federal budget and helping household budgets,” said ASFA CEO Mary Delahunty.
“The research showcases once again why Australia’s super system – built on the pillars of preservation, universality, and compulsion – is the envy of the world.”
The research’s key findings include:
Easing pressure on the federal budget:
- Thanks to super, age pension costs are projected to fall from 2.3% to 2.0% of GDP over the next 40 years, compared to the OECD which is predicted to rise to 10% by 2060.
- Super helps people become less reliant on government support, increasing their economic independence in retirement, and reducing the tax burden on future generations.
- Super makes Australia’s retirement income system one of the most sustainable in the world, keeping government expenditure in check.
Long-term help with cost of living:
- Super provides greater financial security for retirees, reducing reliance on family support and government services.
- Thanks to the principle of preservation, Australia’s superannuation savings are invested in Australian infrastructure and energy projects, helping to boost productivity and lower long-term costs for households and businesses.
- Super’s long-term capital continues to stabilise the economy and insulate it against international shocks by investing in local companies and supporting job creation and wage growth.
Boosting the economy:
- Compulsory super has added $500 billion in household savings, helping Australians in retirement and creating a stable, long-term investment pool that supports Australia’s productivity and prosperity.
- Superannuation fuels domestic investment, with around 50% of superannuation assets allocated domestically, underpinning job creation and economic stability.
Click here to access ASFA’s full research paper, including additional benefits to the economy and charts.
ASFA CEO Mary Delahunty is available for interview.
Quotes from ASFA CEO Mary Delahunty:
“Whether it is lowering the Age Pension costs so more government funding can be directed to the essential services Australians rely on, or helping enable a more dignified retirement, super is delivering for working Australians and our economy.”
“It’s not surprising that our superannuation system is the envy of the world, and it’s something that must be jealously guarded to ensure that the pillars that make it great – preservation, universality and compulsion – are not undermined.”
For further information, please contact:
ASFA Media Manager Richard Garfield, 0451 949 300.
About the Association of Superannuation Funds of Australia (ASFA)
ASFA, the voice of super, has been operating since 1962 and is the peak policy, research and advocacy body for Australia’s superannuation industry. ASFA represents the APRA regulated superannuation industry with over 100 organisations as members from corporate, industry, retail and public sector funds, and service providers. We develop policy positions through collaboration with our diverse membership base and use our deep technical expertise and research capabilities to assist in advancing outcomes for Australians.
We unite the superannuation community, supporting our members with research, advocacy, education and collaboration to help Australians enjoy a dignified retirement. We promote effective practice and advocate for efficiency, sustainability and trust in our world-class retirement income system.
