Comprehensive Analysis: Superannuation Savings for Retirement Planning

This report provides an analysis of superannuation savings for retirement, focusing on its growth and significance within the financial system. It highlights the features of superannuation savings accounts, including capital guarantees and low costs, and discusses the benefits of long-term savings plans, income after retirement, and benefits to beneficiaries. The report also examines the forecasting of retirement needs, the impact of an aging population, taxation incentives, and the presence of different types of funds, such as employer, personal, industry, and self-managed funds. It further explores the reasons for the success of superannuation in Australia, noting that less than 20% of retired Australians rely on pension schemes and only 50% can cover their retirement expenditure. The positive impact on the diversity of Australian savings and increased workplace participation are also discussed, concluding with an appreciation of capital, safety of the post-retirement cycle, and strong support from employers, trade unions, and the government.

SUPERANNUATIO
N
Superannuation savings for retirement is a
growth area and represents a significant
proportion of the assets accumulated in the
financial system

INTRODUCTION
Superannuation savings account is an
account that leads to :
Not
exposed
to
market
volatility
Capital
guarantee
Safety of
money
invested
Backed by the
Commonwealt
h Bank
Low cost
maintenance

SUPERANNUATION
SAVINGS
Long term savings
plan
Income after
retirement
Benefit to
beneficiaries on
death
Amount remain
invested and the
earnings provided
are reinvested

SUPERANNUATION
SAVINGS
Why
Superannuati
on savings?
Forecasting
the
retirement
needs
Aging
population
of country
Taxation
incentives
Savings
accumulate
d by
individual

Benefits
Presence of different type of funds as per the needs:
• Employer/corporate/staff funds - developed by the
employer for the staff benefit
• Personal funds - joined by a person as an
individual. Benefit of fund selection
• Industry funds - pertains to particular industry
• Self-managed super funds - can have five
members and people who can fund higher amount
in super

Reasons of Growth
• how public proposals are regular in
attainment of the goals
Main
objective
• Reforms has increased competition
and efficiency
Accumulatio
n
• comprehensive income product that
attract benefits
Retirement
phase
• managed investment scheme with
strengthening the interest conflict
Governance

Why Superannuation is a
Success?
•Less than 20% of
retired Australia
rests on Pension
scheme
•Age pension
expenditure on
superannuation is
less than 6% of GDP
•Only 50% of Australian
population able to
cover the retirement
expenditure.

Success
Super funds
outperform the retail
funds when it comes to
financial performance
Since 2002 the
satisfaction level of
superannuation funds
are higher
The scoring of industry
funds is 60.6%
satisfaction points as
compared to 56.9% for
retail funds
As per Roy Morgan
Research, satisfaction
ratings for industry
funds increased by
1.5%

Impact of Superannuation
Positive impact on the
diversity of Australia
savings
Due to compulsory
superannuation every
Australian has a take in
the economy of Australia
through the diversified
assets held by them
(Asfa, 2016)
More workplace
participation of
employees
Contribute 1.5 to 2
percentage points to the
national savings rate
For people Age pension
scheme has declined the
major benefit of
superannuation

CONCLUSION
Superannuatio
n savings
ranks over
other forms of
savings
Appreciation of capital
Strong support by the
employer, trade
unions and
government.
Safety of post retirement
cycle

References
Davies, J. (2015) Shaping The Australian Superannuation System For
Success. [online]. Available from:
https://www.canstar.com.au/superannuation/what-does-a-successful-s
uperannuation-system-look-like/
[Accessed: 27 April 2018]
Bodie, Z., Kane, A. and Marcus, A. J. (2014) Investments. McGraw Hill
Brigham, E. & Daves, P. (2012) Intermediate Financial Management.
USA: Cengage Learning.
Davies, T. and Crawford, I. (2012) Financial accounting. Harlow,
England: Pearson.
Asfa. (2016). Superannuation and the economy [online]. Available
from:
https://www.superannuation.asn.au/ArticleDocuments/359/1506-
Super_tax_concessions_and_economy.pdf.aspx?Embed=Y [Accessed
16 May 2018]