Superannuation in Australia: A Survey of the Literature

Abstract

In 2017 Australian superannuation assets stood at 148 per cent of GDP, or $2.5 trillion in absolute terms. This was the world's fourth largest pool of retirement savings, a remarkable outcome over 25 years of the operation of the Superannuation Guarantee. We survey the local academic, industry and policy literature on the economics of superannuation during the last quarter of a century. Topics include the policy debate, the positive, normative and behavioural economics of household interaction with superannuation, and the structure, conduct and performance of the superannuation industry. We encourage further research into effective tax rates, the need to hedge human capital and the automation of financial advice.

Gender, Financial Literacy and Pension Savings*

“…In a similar manner, mortgage payments means that there is less money available to make additional voluntary contribution (Feng, 2018). However, homeownership may lead to higher pension savings, particularly if pensions savings are used to cover housing debt (Kingston & Thorp, 2019). While it is not possible to sign the effect of home ownership a priori (it is an empirical question), we believe it is factor that should be included in our analysis.…”

“…The Australian retirement income system has been described in detail elsewhere (Gerrans, 2012; Bateman et al ., 2014; Dobrescu et al ., 2018; Feng et al ., 2019; Kingston & Thorp, 2019; Preston & Wright, 2022). In brief, it is comprised of three pillars: (1) a means tested, universal, public pension (Age Pension) safety net; (2) a system of mandatory employer pension contributions (known as Superannuation Guarantee (SG) contributions); and (3) pre‐ and post‐tax voluntary contributions into pension funds and other private savings.…”

Privatising and financialising roads: The peculiar case of Transurban

“…Its primary financial adviser was investment banker, Macquarie Group, a pioneer in the conversion of infrastructure into an investment asset class, such that by 2013 Macquarie had become the manager of the world’s largest infrastructure investment fund, MIRA 4 . Important too in the Australian scene was the growth of retirement savings in Australian superannuation funds, creating an appetite for large investment placements in long‐term, steady‐yield assets (Kingston & Thorp, 2019). In 2020, Transurban operated 20 toll roads across Australia and North America, with toll payers across its portfolio growing from an average of 0.2 million users per day in FY2000 to 2.2 million in FY2019 (Transurban, 2020, p. 5).…”

Super‐sizing Renewable Energy Investment: Examining the Portfolio Preferences of Superannuation Fund Members*

“…Employers are currently required to contribute 9.5 per cent above an employee's wages and salaries into one of many different types of superannuation funds, as nominated by the beneficiary or a default option. Kingston and Thorp (2019) provide a comprehensive survey of the literature on superannuation in Australia.…”