In this part 2 of a two-part series, Colin Grenfell, of the Institute's Superannuation Projections and Disclosure ('SPD') subcommittee, continues to provide an insightful assessment of hypotheses on defined contribution superannuation plans and setting the Superannuation Guarantee.
This latest Dialogue paper written by Andrew Boal, and published by the Actuaries Institute, argues that the current taper rate creates a potential ‘trap’ for retirees who don’t draw down and spend their retirement savings fast enough.
In the first of a two-part series, Colin Grenfell, of the Institute's Superannuation Projections and Disclosure (SPD) subcommittee, provides an insightful assessment of hypotheses on defined contribution superannuation plans and setting the Superannuation Guarantee.
The superannuation industry has had phenomenal growth over the last 30 years, much of it attributable to the increasing mandatory employer contributions (now sitting at 9.5% of wages). The Rice Warner Superannuation Market Projections Report 2019 showed that industry assets grew by nearly 10% a year in the decade to June 2019. Although this rate is unsustainable in the long run, we did project (pre-coronavirus) a further 7% a year growth rate over the following 10 years. That will need to be reviewed once we understand the full impact of the COVID-19 pandemic.
Posted 17 December 2019
