Yes that’s true .Our “superannuation system” though seems to be quite good is not the best in the world. From teh results from the recent “Melbourne Mercer Global Pension Index” which Mercer surveyed 14 countries, the Netherlands was ranked first, followed by Switzerland, Sweden, Australia, Canada, UK, Chile, Brazil, Singapore, the US, France, Germany, Japan and China.
Australia Superannuation system rating
In the duration of the 12 months since the first Melbourne Mercer Global Pension Index was completed, not only has Australia’s raw score dropped, but australia has also taken a tumble down the rankings. The Netherlands obtained top ranking in the Melbourne Mercer Global Pension Index with a score of 76.1 out of a maximum of 100, followed by Australia (74.0), Sweden (73.5) and Canada (73.2).
The Melbourne Mercer Global Pension Index compares retirement income systems around the world and rates them based on their adequacy, sustainability and integrity.
Mercer’s Report stated five things that Australia could do to “improve” its Superannuation system.
1. Raise the level of mandatory contributions to improve the level of benefits while also increasing the level of household savings.
2. Introduce a requirement that part of the retirement benefit must be taken as an income stream.
3. Increase the labour force participation rate among older workers.
4. Introduce a mechanism to increase the pension age as life expectancy continues to increase.
5. Reduce the costs of the system by encouraging greater efficiency
How the the Superannuation report was compiled
In 2010 the Melbourne Mercer Global Pension Index was expanded to cover fourteen countries, with the addition of Brazil, France and Switzerland.
In this year’s study four new indicators were included in the calculation of the Index. These were an assessment of the costs of each country’s system; the level of home ownership; asset allocation; and the effect of divorce on the provision of retirement benefits.
Superannuation in australia
Superannuation is a retirement (including pensions) program in Australia. It has a compulsory element whereby employers are required by law to pay an additional amount based on a proportion of an employee’s salaries and wages (currently 9%) into a complying superannuation fund, which can be accessed when the employee meets one of the conditions of release contained in Schedule 1 of the Superannuation Industry (Supervision) Regulations 1994.