Retirement
How will super be used in the next financial crisis?
The CIO of Australia’s largest superannuation fund has highlighted the strength of the current scheme in supporting millions of Australians, but has urged for clarity before the next financial downturn hits markets.
How will super be used in the next financial crisis?
The CIO of Australia’s largest superannuation fund has highlighted the strength of the current scheme in supporting millions of Australians, but has urged for clarity before the next financial downturn hits markets.
AustralianSuper has so far had over 300,000 requests for early release of super and has paid out $2 billion to its members who have fallen under financial hardships due to the COVID-19 pandemic.
But while other super funds have warned on the need for policy stability in the wake of the scheme, AustralianSuper is unlikely to be the voice of change, despite having the most members.
“Do we think that the super system will be a vehicle for early access in the next downturn or the one after, and does that change the way we manage portfolios?” CIO and deputy CEO Mark Delaney told media during a Bloomberg address.
“Part of the reason you can have a long-term investment horizon is because you consider the money is going to be there for a long time.
“But early access on the size and scale we’ve seen this time has been no problem,” Mr Delaney noted.
He warned, however, that while the early release super had been helpful to Australians experiencing financial hardship through the COVID-19 crisis, it would still have consequences for their retirement.
“Early release has worked for people; it’s given them a chance to get some money,” Mr Delaney said. “It has come at the cost of the long-term retirement savings, and that’s something they’ve got to be conscious about and try to rebuild them as quickly as possible, but it has gone well.”
Critics of the policy have noted that Australia’s superannuation system should not be used to support the economy.
“Superannuation funds should not be used as an ATM when times get tough. I understand that these are unprecedented times and many Australians are facing real financial difficulties. But it is a shortsighted policy that will result in a short-term sugar hit to those affected at the expense of their super balances in 20 or 30 years’ time,” Betashares CEO Alex Vynokur said.
Did you enjoy this article? You may also be interested in:
- Superannuation is down but not out
- Can accessing superannuation early close the retirement gap?
- Industry expert slams super release
About the author
About the author
Superannuation
Survey reveals Australians' reliance on superannuation for retirement
A new survey by AustralianSuper has found that only 32% of Australians believe they could save for retirement without compulsory superannuation. Read more
Superannuation
AMP launches national campaign to boost super engagement
AMP has unveiled a new national advertising campaign aimed at encouraging Australians to engage more actively with their superannuation. Read more
Superannuation
AustralianSuper urges action on gender pay gap for Equal Pay Day
AustralianSuper, Australia's largest superannuation fund, is calling for increased focus on the gender pay gap and its long-term impacts on women's retirement savings this Equal Pay Day, August 19. Read more
Superannuation
AMP advisers focus on super contributions and home ownership queries
Financial advisers are prioritizing assistance with superannuation contributions, transfer balance caps, death benefits, and home ownership issues, according to recent data from AMP Advice. Read more
Superannuation
Aware Super reports strong 11.02% return for flagship investment option
Aware Super, one of Australia's largest superannuation funds, has announced an 11.02% return for its High Growth accumulation option in the 2024 financial year. Read more
Superannuation
Retirement savings strategies: How to boost your superannuation
Superannuation is a pivotal part of retirement planning in Australia, offering a tax-effective way to save for your later years. As you navigate through your working life, enhancing your ...Read more
Superannuation
Aware Super takes on Australia's gender retirement gap, aiming for financial equality
Aware Super, one of Australia's largest superannuation funds with a 70 per cent female membership, is on a mission to close the gender gap that sees women retire with 30 per cent less super than men ...Read more
Superannuation
Age Pension increase prompts Australians to review their finances
The increase in the Age Pension, which takes effect today, should serve as a prompt for many older Australians to ensure they're maximizing their income as cost-of-living pressures persist, according ...Read more
Superannuation
Survey reveals Australians' reliance on superannuation for retirement
A new survey by AustralianSuper has found that only 32% of Australians believe they could save for retirement without compulsory superannuation. Read more
Superannuation
AMP launches national campaign to boost super engagement
AMP has unveiled a new national advertising campaign aimed at encouraging Australians to engage more actively with their superannuation. Read more
Superannuation
AustralianSuper urges action on gender pay gap for Equal Pay Day
AustralianSuper, Australia's largest superannuation fund, is calling for increased focus on the gender pay gap and its long-term impacts on women's retirement savings this Equal Pay Day, August 19. Read more
Superannuation
AMP advisers focus on super contributions and home ownership queries
Financial advisers are prioritizing assistance with superannuation contributions, transfer balance caps, death benefits, and home ownership issues, according to recent data from AMP Advice. Read more
Superannuation
Aware Super reports strong 11.02% return for flagship investment option
Aware Super, one of Australia's largest superannuation funds, has announced an 11.02% return for its High Growth accumulation option in the 2024 financial year. Read more
Superannuation
Retirement savings strategies: How to boost your superannuation
Superannuation is a pivotal part of retirement planning in Australia, offering a tax-effective way to save for your later years. As you navigate through your working life, enhancing your ...Read more
Superannuation
Aware Super takes on Australia's gender retirement gap, aiming for financial equality
Aware Super, one of Australia's largest superannuation funds with a 70 per cent female membership, is on a mission to close the gender gap that sees women retire with 30 per cent less super than men ...Read more
Superannuation
Age Pension increase prompts Australians to review their finances
The increase in the Age Pension, which takes effect today, should serve as a prompt for many older Australians to ensure they're maximizing their income as cost-of-living pressures persist, according ...Read more