AUSTRALIA - A survey of super funds and employers representing over one million members has revealed 86% believe the current 9% mandatory savings rate is too small.
Nearly half of the respondents, 48%, proposed an increase to between 13% and 15% of pay, with 38% suggesting 10% to 12% as the preferred number. Only 14% of those surveyed believe the current 9% is sufficient as a compulsory amount.
The respondents voiced frustration with the three regulators who currently oversee superannuation savings. 76% said The Australian Prudential Regulation Authority (APRA), the Australian Securities & Investment Commission (ASIC) and Australian Tax Office (ATO) should be replaced with a single super regulator which they hoped would cut down on their compliance burden.
Linda Elkins, managing director of Russell Superannuation, said: "Many of the employers we work with already actively support their employees by paying more than the 9% Super Guarantee minimum. In some cases they will match contributions paid by their employees, providing a great opportunity for forward thinking employers to partner with their workforce in creating better retirement incomes."
Other areas flagged by super practitioners include addressing conflicts of interest in advice to members and regulation of fees and charges.
"Russell's role has been to help raise awareness with members of the value and importance of making voluntary super contributions - and we're finding there's more than one way to skin this cat," Elkins said.
Most respondents in this week's Pensions Buzz do not think businesses should be able suspend AE contributions if in financial distress.
Former BHS owner Dominic Chappell has lost the appeal against his section 72 conviction and sentence for failing to hand over information to The Pensions Regulator (TPR).
This week's top stories include Marsh and McLennan Companies agreeing to buy JLT, and the home secretary calling for AE to be scrapped in a no-deal Brexit scenario.
Lesley Titcomb says the watchdog wants closer interactions with pension funds to spot problems sooner and act before having to use its more stringent powers