AUSTRALIA - Superannuation savings recently recorded the largest quarterly increase since statistics were first collected, according to the Association of Superannuation Funds of Australia (ASFA).
New figures from the Australian Bureau of Statistics indicated that there was an 8.4% increase in super savings, which brought total superannuation assets to A$72bn in the June quarter 2007.
According to ASFA, the increase in superannuation assets was largely due to returns of around 3.5% for the average superannuation fund, meaning total investment earnings in the June quarter reached around $30bn.
An additional A$1bn went into superannuation accounts in the June quarter 2007 from the government's one-off doubling of the co-contribution for personal contributions in 2005-06.
ASFA also explained that some individuals who would have delayed taking benefits given the imminent abolition of the benefits tax for those aged 60 and over, left more money in the system.
Also, at least an additional A$14bn of large contributions went into retail, self-managed and industry super funds in the lead up to the 30 June deadline for contributions of up to A$1m.
Pauline Vamos, new CEO of ASFA, said: " The main creative elements were the additional co-contribution by the government, a rush of contributions ahead of 30 June cut off and healthy investment market performance."
In other Australian super news, Sunsuper has appointed three new managers to its investment team, allowing it to focus on alternative investment opportunities as a strategy to ensure strong growth.
The new appointees and their areas are Suzanna Berman, fixed income investments, Megan Chan, infrastructure and property assets, and Bruce Tomlinson, alternative asset opportunities.
Sunsuper’s assets under management have grown from AUS$9bn to $12.5bn over the 2006-07 fiscal year.
In this week's Pensions Buzz, we want to know if The Pensions Regulator (TPR) is taking the right approach by naming and shaming schemes which breach their auto-enrolment (AE) duties.
Raised over £167,000
There is still time to make your nominations for the PP Women in Pensions Awards 2018. Find out more here…
The directors of collapsed construction giant Carillion were "contemptuous" of funding their defined benefit (DB) pension schemes, and "refused to give an inch", Frank Field has alleged.