The Australian Institute of Superannuation Trustees (AIST) has paid tribute to Australia’s retirement savings system as compulsory universal superannuation turns 30 tomorrow.
AIST CEO Eva Scheerlinck said the introduction of the Superannuation Guarantee (SG) in 1992 had resulted in a world-class system entrusted with $3.4 trillion in savings on behalf of millions of Australians.
“We should be very proud of what we have achieved as a progressive nation, building a superannuation system with almost universal worker coverage. The industry too can be proud of what it has delivered for super fund members over the last three decades, ensuring many Australians no longer have to rely solely on the age pension when they leave the workforce,” Ms Scheerlinck said.
“It’s appropriate at this time to pause and reflect on the prime role played by unions in fighting for a retirement savings system that covered all workers rather than the corporate executives and senior public servants – mainly men – that super had been restricted to until then.
“Initially the proposal for a universal system was resisted by some, but a mark of how far we have come is the bipartisan support it now enjoys across the industrial divide with the employer and employee representatives sitting side by side in boardrooms as trustee directors of profit-to-member funds.
“I want to recognise the contribution of pioneers such as Mavis Robertson, who played a major role in promoting equality for women in retirement savings, Tom McDonald who spearheaded union campaigns for industry-based super, and Gary Weaven, Chair of IFM Investors, founding Chair of Industry Fund Services and founding Chair of a number of funds.
“It’s appropriate to also recognise the role of the Hawke and Keating Governments in the development of universal super and the passing of the legislation which created the SG.
“That we have the fifth largest pool of retirement savings in the world in the 14th largest economy, and stand as an example that other countries seek to emulate, is testimony to the success of our retirement savings model and the growth of the industry.
“Notwithstanding this, as the peak body for the $1.8 billion profit-to-member sector, AIST will continue to advocate to improve the fairness, equity, adequacy, and transparency of the retirement savings system so that it provides Australians with the long-term financial stability and dignified retirement they deserve, regardless of gender, culture, education or socio-economic background.
“This includes closing the gender gap that sees women retire, on average, with significantly lower super balances than men, and improving retirement outcomes for other lower-paid workers and vulnerable people. We’re also pleased the removal of the $450 monthly salary payments threshold tomorrow delivers super to about 300,000 lower-paid Australians for the first time.”
Learn more about superannuation in the Small business Answers guide.