February 2020

20Feb

Australia. Jobs drought for older workers increases risk of ‘pension poverty’

Older Australians are missing out on job opportunities and seeing their hopes for a secure and dignified retirement evaporate, Labor leader Anthony Albanese said. “Today, over 170,000 Australians aged between 55 and 64 are on unemployment benefits just when they should be building their nest egg,” Mr Albanese told the Queensland Media Club on Wednesday. Australian Bureau of Statistics (ABS) figures show that the number of older Australians out of work has increased over the past five years, despite...

February 20, 2020
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19Feb

A call to let pensioners work in Australia

The Retirement Income Review should consider a simpler and more flexible system which allows pensioners to work without being punished, according to National Seniors Australia, the peak consumer organisation representing older Australians. National Seniors has suggested this reform be examined as part of its submission to the Review. Chief Advocate Ian Henschke says the Review’s Panel should look at other pension and retirement income systems and import ways to make the Australian system simpler and more flexible. “There are...

February 19, 2020
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13Feb

Gig economy sucking super savings dry

By  Ally Selby  It's causing everyday Aussies to retire with much less, forcing the country's taxpayers to carry the added costs, according to a Treasury submission by the Actuaries Institute. I n a paper submitted to the Treasury's Retirement Income Review Panel, the Institute warned of the new risks to Australia's superannuation system. "The gig economy... creates a new set of problems with respect to the superannuation guarantee (SG) system," it said. "It provides people with different types of jobs...

February 13, 2020
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11Feb

Australia. Pension minimums ‘nudge’ retirees to spend less, not more

Australian retirees are interpreting minimum pension drawdown rates as proxy financial advice from the government and holding back on spending more of their savings, according to a recent study out of the University of New South Wales (UNSW). The October 2019 study, ‘Spending from regulated retirement drawdowns: the role of implied endorsement’, found that 30 per cent of retirees were influenced by the “implied endorsement nudge” of a mandated minimum pension drawdown rule. “While regulated drawdowns compel regular withdrawal...

February 11, 2020
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05Feb

Super funds push for lower pension age for Indigenous Australians

Superannuation funds are agitating for lower retirement age thresholds for Indigenous Australians, warning lower life expectancy means they're not getting fair access to the pension and super. Major fund AustralianSuper, consulting firm PricewaterhouseCoopers, the Australian Institute of Superannuation Trustees and the Australian Council of Trade Unions all raised concerns about Indigenous access to funds in retirement as part of submissions to a government review Australian Bureau of Statistics data shows for the Aboriginal and Torres Strait Islander population born...

February 5, 2020
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January 2020

29Jan

New Zealand. Retirement Commissioner backtracks on call to raise pension age because Kiwis can’t afford it

New Zealanders are approaching retirement in poorer shape than their parents' generation did – and that means we cannot afford to raise the pension age, the Retirement Commissioner says. The commission has long argued that an increase in the age of eligibility for superannuation is needed because of the cost of providing it to an increasing number of older people. But now acting commissioner Peter Cordtz has issued recommendations that backtrack on that. In the commission's latest three-yearly Review...

January 29, 2020
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22Jan

Australia. More pensioners are taking up part-time work to avoid the threat of pension poverty

More pensioners than ever are having to work part-time just to get by according to new research, with nearly 5 per cent of people on the pension now doing paid work. Key points: New research shows that a growing number of pensioners are needing to work part-time Women and divorcees are among those most affected Seniors Australia says tax changes are needed to not penalise pensioners who work Cost of living and inequality researcher Paul Blacklow, of the University...

January 22, 2020
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16Jan

Australia. Superannuation returns hit a six-year high in 2019, but investors warn of a 2020 slowdown

The total size of Australia's superannuation is staggering. Key points: The average super fund returned 15.2 per cent, while the typical balanced fund grew by 13.8 per cent in 2019 Those returns are the best since 2013 Analysts say lower interest rates, partly initiated by Donald Trump's trade war with China, were a major factor in the growth "We've got the equivalent of three football stadiums of $100 bills," the chief executive of the Association of Superannuation Funds of...

January 16, 2020
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December 2019

11Dec

MySuper Product Heatmap

By APRA The MySuper Product Heatmap provides assessments of the performance of every MySuper superannuation product. The heatmap provides stakeholders with transparency on the outcomes being delivered by all trustees providing MySuper products. It is designed to lift industry practices and enhance member outcomes by publicly identifying which MySuper products are underperforming and the areas they need to improve. It uses a graduating colour scheme to provide credible, clear and comparable insights into MySuper products across three areas: investment performance, fees...

December 11, 2019
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11Dec

Worst Australian Pension Funds Warned to Improve or Shut Down

Australia’s prudential regulator has vowed to weed out under-performing pension funds after publishing its first ranking of firms, including those it fears don’t have a sustainable business model. The inaugural heatmap assessment of default investment plans found 15 had issues with net cash flow or growth that jeopardized their future survival, the Australian Prudential Regulation Authority said Tuesday. Some 28 funds were found to be charging excessive fees, and nine had net returns significantly below a reference portfolio of...

December 11, 2019
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