Australia has a world-class superannuation system, but it is also the most complex. From insurances to estate provisions to the many different forms of contributions and withdrawals, we should try to ‘keep it simple’.
Tag Archives | Defined Contribution funds
Despite similar objectives, the proportion of Australian superannuation assets in alternative and less liquid assets is much lower than for other long-term investors such as family offices and global pension funds.
Australia’s defined contribution superannuation market seems to be obsessed with ‘liquid’ investments. For the long-term investment that super inherently is, it doesn’t make sense to limit our options.
Defined benefit funds will be scarce in the future but their features shouldn’t be forgotten. Defined contribution funds should be incorporating some of these features to their members’ advantage as well their own.
I think the legislation based on the Cooper Review recommendations looks pretty good overall, although naturally, compromises have occurred. The big disappointment, though, is retirement.