Superannuation is contributing to the economic stability and growth of the country, according to a report by the Association of Superannuation Funds of Australia (ASFA).
The report found compulsory superannuation has:
1. Reduced the cost of the Age Pension on the Budget;
2. Substantially diversified assets Australians hold;
3. Reduced risk; and
4. Increased returns for people.
The growing superannuation pool has contributed to Australia having a high savings rate and is reducing Australia’s reliance on foreign capital, reducing both the risk and the cost of investment in Australia, the report said.
ASFA chief executive, Pauline Vamos, said as other countries had difficulty finding funding during the global financial crisis, super funds were an important source of capital for Australian companies to refinance.
Vamos noted that compulsory and voluntary superannuation has transformed the assets Australians hold.
“In 1990, Australians’ savings consisted almost entirely of real estate and cash. Today, through their superannuation, Australians are investing in a diversified range of assets, including domestic and overseas equities, fixed interest, infrastructure, and commercial property,” she said.
As reported by Jassmyn Goh at Money Management
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