May 2021
14May

Australia Considers Paying Pensions on Parental Leave Program

Australia could chip into the pension funds of eligible workers who take up its 18 weeks of paid parental leave, just not yet, amid criticism the government isn’t doing enough to ensure women are financially secure in retirement. The policy was changed last year to also pay fathers to take time out of the workforce to help raise kids, however it hasn’t yet had time to “manifest,” Jane Hume, minister for superannuation and newly-installed minister for women’s economic security, told...

May 14, 2021
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12May

Australia’s Budget Takes Steps to Narrow Gender Gap in Pensions

Australia is taking steps to lift retirement savings of women in a bid to address the gender pension gap. The government will remove the A$450 ($352) per month earnings threshold before employers are forced contribute cash into their workers’ retirement funds by July 2022, according to budget documents released Tuesday. Australia will also increase compulsory pension savings to 10% of a worker’s wage from July 1, as previously legislated. Read also Australia Considers Paying Pensions on Parental Leave Program The plan comes...

May 12, 2021
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April 2021
26Apr

Australia. Women retire with over $30,000 lower balance in super than men

Australians need to prepare for retirement and take control over when and with how much they want to retire, according to chief analyst at Wealth Within, Dale Gillham. He stressed it was also concerning that women retired on average with a balance of $122,848 in super compared to men who, according to the Association of Superannuation Funds Australia (ASFA) figures, retired with an average of $154,453. “When you look at the figures on how much Australians are retiring on, it shines...

April 26, 2021
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22Apr

Australian regulator issues long-awaited climate risk guidance

Australia's prudential regulator unveiled long-awaited guidance for banks, insurers and pension funds on managing and disclosing climate-related risks, including physical, transition and liability exposures. Issuing a draft version for consultation, the Australian Prudential Regulation Authority (APRA) said the guidance paper did not create new requirements or obligations, but gave more clarity about its expectations. The guide was developed in consultation with peer regulators globally and is aligned with the recommendations from the global Task Force on Climate-related Financial Disclosure (TCFD), set...

April 22, 2021
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07Apr

Australia. Dutch pension giant boosts local exposure with $350m EG investment

Dutch pension giant PGGM doubled down on its investment in Australian commercial real estate, putting $350 million into a diversified fund managed by EG less than six months after entering into an $800 million partnership with Charter Hall. PGGM joins four other investors in the open-ended diversified EG Australian Core Enhanced Fund (ACE) which in the past two years has spent $234 million on three industrial properties, a Bunnings near Sydney Airport and a Perth office tower. Read more @Financial Review 328...

April 7, 2021
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March 2021
24Mar

Australia. Pensions Giant Says Treasury Yields at 3% Will Change Everything

If there’s one core view at the heart of the investment strategy at Australia’s biggest pension fund, it’s that yields still have a long way to rise. The exodus from Treasuries will continue until 10-year yields top out at 3% or so, which would be high enough to imperil economic growth and force the Federal Reserve to respond, according to Carl Astorri, head of asset allocation at AustralianSuper Pty., which manages A$210 billion ($161 billion). He has been further trimming...

March 24, 2021
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16Mar

Australia pensions ink deal to create $208.5 billion mega fund

Two of Australia's largest pension funds moved a step closer to creating a A$200 billion (S$208.5 billion) giant as the world's fourth-biggest pension pot consolidates. Read also Italy. Pension funds seize first Italian green bonds offering Super and Sunsuper have signed a deal to merge, the two funds said in a joint statement on Monday (March 15). The Brisbane-based funds will combine by September. Read also Too much, or not enough: the risks of drawdown "This historic agreement will pave the way for...

March 16, 2021
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10Mar

Australia. Age Pension increase for mid March

This announcement follows the Royal Commission into Aged Care Quality and Safety's Final Report, tabled into Parliament on 26 February 2021, which outlined the necessary changes needed in the aged care sector From 20 March, 2021, all social security payments will be increased, including the Carer Payment. The Age Pension was not raised last September, which the peak body for older people, National Seniors Australia, says was the first time there was no increase to cover the cost of living in the...

March 10, 2021
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February 2021
19Feb

Income and Saving Responses to Tax Incentives for Private Retirement Savings

By Marc K. Chan, Todd Morris, Cain Polidano, Ha Vu Many governments offer tax concessions for retirement contributions to boost retirement savings and alleviate the fiscal pressures of population aging. In this paper, we show that income responses are crucial for understanding these impacts. Using tax-register data, we study large changes in caps on tax-favored contributions to individual retirement accounts in Australia. We find that higher caps increase retirement contributions considerably, with around two-thirds of this response financed by increases...

February 19, 2021
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19Feb

Addressing the financial timebomb of ageing Australia

The 2015 Intergenerational Report found that Australia’s aged dependency ratio (the number of people over 65 for every working-age person 15 to 64) is expected to double over the next 40 years. This means there will be fewer taxpayers supporting a growing demand for pensions and services, including health and aged care. In addition, the rate of home ownership is continuing to decline among young Australians, suggesting more people will face the ongoing costs of renting once they retire. The superannuation guarantee...

February 19, 2021
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