29 November 2024
The new Objective of Superannuation legislation will help keep future policymaking focused on delivering the best retirement outcomes for super fund members, AustralianSuper Chief Executive, Paul Schroder, said today.
The new law states the objective of super is ‘to preserve savings to deliver income for a dignified retirement, alongside government support, in an equitable and sustainable way’.
‘AustralianSuper endorses the new legislated objective, which is simple and focused on what superannuation funds are designed to do – help members achieve their best financial position in retirement,’ Mr Schroder said.
‘The magic of the system is compound interest and strong investment performance – preservation plays a key role in both.
‘We have seen over decades governments wanting to tinker with the system in ways that are not aligned with this purpose. Enshrining the Objective of Superannuation will keep a steadfast focus on what super is supposed to do - preserve members’ hard-earned savings over the length of a working life to improve their retirement outcome and help them to have a dignified retirement.’
Universal superannuation in Australia was introduced more than 30 years ago and has been a public policy success story, creating a pool of $4 trillion in savings, taking pressure off the Age Pension and significantly improving financial security for Australians when they reach retirement.
Mr Schroder said that while the passage of the new law was long overdue, it was an important step in achieving policy and regulatory stability for the system going forward.
‘The law will require future governments to ensure the superannuation system remains fit for purpose for generations,’ he said.
‘Preservation helps people save for the length of their working lives so they can reach their best financial position in retirement.
‘Any future law reform will have to have consider the purpose and stability of the system, which is a significant step forward and highlights the fundamental nature of superannuation as a concessionally taxed, long-term savings vehicle for retirement.’
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About AustralianSuper
AustralianSuper manages more than $355 billion in members’ retirement savings on behalf of more than 3.4 million members from more than 476,000 businesses (as at 30 September 2024).
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