Australia’s pension system is in urgent need of reform in order to function efficiently and provide protection for more people, according to local news website NewsWire, citing Paul Schroder, chief executive of AustralianSuper.
He says the system as it is now is inconvenient because Australians have to open multiple accounts if they want to draw on retirement savings while continuing to contribute.
“How stupid is that?… I am calling for changes to the law so that Australians can easily move back and forth between work and retirement. Between saving their money and spending it,” Schroder is quoted as saying in the report on September 5.
He also called for changes to solve inequalities in the system, noting that many Australians, particularly women, miss out on contributing during interruptions in their working lives.
“Others – gig workers, people from non-English speaking backgrounds, or those with unpaid super – they will miss out in a range of different ways,” he says.
According to Schroder, the government can play a role in overcoming such inequalities.
“Tax concessions were central to the success and fairness of superannuation. The deal here is simple. I lock my money away for 40 years to fund my future, and in return, the government gives me concessional tax arrangements,” he says.
AustralianSuper is Australia’s largest superannuation fund, with A$387 billion (US$249 billion) of assets under management as of end-June.
