Retirement
Think about super, property to protect younger generations’ future: CEDA
Retirement
Think about super, property to protect younger generations’ future: CEDA
As Millennials grapple with the gig economy, older generations accrue sizeable wealth in superannuation and property, a new study calling for an assessment of the super system has found.
Think about super, property to protect younger generations’ future: CEDA
As Millennials grapple with the gig economy, older generations accrue sizeable wealth in superannuation and property, a new study calling for an assessment of the super system has found.
The Committee for Economic Development of Australia on Friday released its study into current and future inequality in Australia, finding that while younger workers’ incomes increased at a faster rate than older households over the 1985-2010 period, older generations’ levels of wealth increased more rapidly.
“This has been driven by increasing superannuation wealth as retirement approaches, and increasing property wealth,” explained CEDA chief executive Melinda Cilento, adding that younger households have simultaneously experienced declining rates of home ownership and higher indebtedness.
The report also noted that the 25 years of economic growth have not had a significant impact on general inequality, as the national percentage of people sitting below the population remains stuck at 13 per cent.
“At the same time we are not preparing fast enough to manage emerging risks around technology, which could compound these issues further.
“For example, gig economy workers do not have superannuation deducted by their employer, potentially exposing them to future retirement income gaps,” Ms Cilento said.
“The government should explore the adequacy of superannuation, pension and savings products for contingent workers to ensure this does not become an issue in the future.”
The report also called for the government at all levels to address housing affordability as it affects young Australians. This recommendation made an appearance on last year’s Housing Australia report, Ms Cilento noted.
In particular, the report said the government should consider relaxing and better aligning planning restrictions, while assessing the rules around the means testing of income received by downsizing.
CEDA also pushed for an annual land tax on housing in place of transaction taxes, and called for the government to “review the way in which pensions, superannuation and housing interact in providing support for Australians in the retirement phase”.
RELATED ARTICLES
Superannuation
Aware Super triumphs at Chant West Super Fund Awards with top honours
In a significant achievement for Aware Super, the fund has clinched top honours at the Chant West Super Fund Awards, securing both the Super Fund of the Year and Pension Fund of the Year titlesRead more
Superannuation
NGS Super rolls out enhanced member advice services with a focus on accessibility
In a significant move to make financial advice more accessible, NGS Super has unveiled an enhanced suite of member advice services, featuring a new digital advice platform. This initiative aims to ...Read more
Superannuation
US data centre investment highlights the benefits of decarbonisation and digitalisation
In a compelling demonstration of the global shift towards decarbonisation and digitalisation, Rest, one of Australia's largest profit-to-member superannuation funds, has underscored the value created ...Read more
Superannuation
Aware Super bolsters support for financial advisers amid growing partnerships
In a strategic move to enhance its growth trajectory, Aware Super has announced a significant investment in bolstering support for financial advisers, aiming to deliver superior retirement outcomes ...Read more
Superannuation
TelstraSuper and Aware Super merge, creating a powerhouse with over $235 billion in funds
In a strategic move that underscores the growing trend of consolidation in the superannuation industry, TelstraSuper and Aware Super have successfully completed their merger, creating a formidable ...Read more
Superannuation
Parliamentary support heralds a fairer superannuation system for under-18s
In a significant development for Australia's superannuation landscape, Rest, one of the nation's largest profit-to-member super funds, has praised the recent cross-parliamentary support for extending ...Read more
Superannuation
Australia's superannuation system sets global benchmark for retirement savings
Australia has quietly established one of the most effective retirement savings cultures in the world, largely by eliminating the human element from the decision-making process. The country's ...Read more
Superannuation
Rest appoints new senior leaders to drive data and tax strategy
In a strategic move to bolster its capabilities in data management and tax governance, Rest, one of Australia's leading profit-to-member superannuation funds, has announced the appointment of two ...Read more
Superannuation
Aware Super triumphs at Chant West Super Fund Awards with top honours
In a significant achievement for Aware Super, the fund has clinched top honours at the Chant West Super Fund Awards, securing both the Super Fund of the Year and Pension Fund of the Year titlesRead more
Superannuation
NGS Super rolls out enhanced member advice services with a focus on accessibility
In a significant move to make financial advice more accessible, NGS Super has unveiled an enhanced suite of member advice services, featuring a new digital advice platform. This initiative aims to ...Read more
Superannuation
US data centre investment highlights the benefits of decarbonisation and digitalisation
In a compelling demonstration of the global shift towards decarbonisation and digitalisation, Rest, one of Australia's largest profit-to-member superannuation funds, has underscored the value created ...Read more
Superannuation
Aware Super bolsters support for financial advisers amid growing partnerships
In a strategic move to enhance its growth trajectory, Aware Super has announced a significant investment in bolstering support for financial advisers, aiming to deliver superior retirement outcomes ...Read more
Superannuation
TelstraSuper and Aware Super merge, creating a powerhouse with over $235 billion in funds
In a strategic move that underscores the growing trend of consolidation in the superannuation industry, TelstraSuper and Aware Super have successfully completed their merger, creating a formidable ...Read more
Superannuation
Parliamentary support heralds a fairer superannuation system for under-18s
In a significant development for Australia's superannuation landscape, Rest, one of the nation's largest profit-to-member super funds, has praised the recent cross-parliamentary support for extending ...Read more
Superannuation
Australia's superannuation system sets global benchmark for retirement savings
Australia has quietly established one of the most effective retirement savings cultures in the world, largely by eliminating the human element from the decision-making process. The country's ...Read more
Superannuation
Rest appoints new senior leaders to drive data and tax strategy
In a strategic move to bolster its capabilities in data management and tax governance, Rest, one of Australia's leading profit-to-member superannuation funds, has announced the appointment of two ...Read more
