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.
This week's top stories included Cardano announcing plans to acquire Now Pensions from a Dutch pension fund later this year.
Royal Bank of Scotland (RBS) faces a £102m impact on liabilities as a result of equalising guaranteed minimum pensions (GMPs), according to its annual results.
Malcolm Mclean says getting the channels of communication right and engaging more openly is a good starting point