February 2021
17Feb

Australia. Pension transfer balance cap increase is not all bad news

By Meg Heffron There has been plenty of doom and gloom about the increase in the transfer balance cap that will come into effect on July 1. Remember, the transfer balance cap is the limit on the amount anyone can transfer into what is known as a “retirement phase” pension over their lifetime Retirement phase pensions (so called because they are usually started by people who have retired) are the ones that give the best tax breaks – they allow self-managed super...

February 17, 2021
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12Feb

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 12, 2021
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09Feb

Australia. Retirement Income Review Under Spotlight

The future of retirement income policy – including pensions, superannuation and thee role of housing – will come under the spotlight as the nation’s decision-makers and policy experts canvass the implications of the Retirement Income Review at the Council on the Ageing’s National Policy Forum on 26 February. The full day conference to be held at the National Press Club in Canberra, and streamed virtually, will include: A keynote address by Treasurer John Frydenberg A lunchtime debate between Minister for Superannuation Jane...

February 9, 2021
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January 2021

29Jan

Australia’s pension assets fall for first time since 2009- regulator

Australia’s pension assets decreased for the first time in a decade in the financial year ending June 2020, as workers withdrew on their savings to weather the coronavirus crisis, the sector regulator said in a report on Friday. Total assets in superannuation funds, as retirement funds are called in Australia, were A$2.9 trillion ($2.2 trillion) at June 30, down 0.41%, after growing every year since 2009 from A$1 billion, the Australian Prudential Regulation Authority (APRA) said. Lump sum payments...

January 29, 2021
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27Jan

Fund run by Australian pension investors seeks stake in Spain’s Naturgy

Investment fund IFM Global Infrastructure Fund offered on Tuesday to buy a 22.7% stake in Spain’s Naturgy for 5.06 billion euros ($6.13 billion), sending the power group’s shares soaring 16% to lead gainers on Madrid’s bourse. The cash offer of 23 euros per share represented a 19.7% premium over Naturgy’s closing price on Monday, according to calculations by the fund’s manager IFM Investors, which is owned by Australian pension funds. Naturgy’s earnings have been hit over the past year...

January 27, 2021
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26Jan

Australia. Super top-up: Funds call for $5000 payments for low-income earners

The federal government should make one-off contributions of up to $5000 into the superannuation accounts of low-income earners who accessed their retirement savings early, a lobby group has argued. The Australian Institute of Superannuation Trustees (AIST) on Monday released new analysis showing almost one million young workers who accessed the government’s early super access scheme had either emptied their accounts or reduced their balances to less than $1000. Amid mounting evidence of the recession’s disproportionate impact on young people,...

January 26, 2021
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22Jan

Australia. Fresh calls for universal pension after talk of new ‘death tax’

After some talk about drawing money from deceased super estates, one seniors' advocate is recommending a universal pension. Ian Henschke, chief advocate for National Seniors Australia, has renewed calls for a universal pension scheme that isn't means tested. "Review after review complains about older people failing to spend down their capital; they don’t blame the system, they blame the retiree. And then they wonder why no one’s listening," he told Savings.com.au. "By setting income and asset limits which restrict...

January 22, 2021
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18Jan

Australia. Why we should stick with the 12pc super guarantee rate

By Karen Maley If Treasurer Josh Frydenberg was hoping that the eagerly awaited Callaghan retirement income review might help him resolve the fiendishly difficult political problem of what to do with the superannuation guarantee levy, he'll be deeply disappointed. The Morrison government is facing intense pressure from a group of hardline backbenchers to scrap the long-legislated increase in employers' compulsory contribution to their workers' super from 9.5 per cent of wages to 12 per cent by 2025. Read more @AFR

January 18, 2021
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05Jan

Covid to accelerate restructuring of Australia’s pensions industry

Testing financial conditions during 2020 have added to the pressure on Australia’s superannuation industry to deliver better investment outcomes and greater cost efficiency, according to Funds Global Asia’s 2020 Australia survey conducted in partnership with Calastone. Respondents predict that this will accelerate mergers between superannuation funds, while placing fresh demands on fund providers to offer wider product choice to scheme members. The Australian pension fund, or “superannuation”, sector, has been under scrutiny from financial regulators over the past four years as...

January 5, 2021
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December 2020

18Dec

Australian Regulator Questions 10 Pensions Over Poor Performance

Australia’s prudential regulator will consider using its enforcement powers on 10 default retirement savings plans that were found to be among the nation’s worst performers for a second year. The Australian Prudential Regulation Authority said Friday it is assessing whether the eight trustees managing the plans have failed their obligations to members and will seek information on how they’re addressing the underperformance. APRA will then determine what action will be taken, including whether to use its power to force...

December 18, 2020
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