Australia's Retirement Income System: Implications for Saving and Capital Markets
AbstractAustralia is in the early stages of introducing a system of self-provision for retirement through mandatory contributions to" private superannuation funds. For most employees, the scheme will eventually replace, either fully or partially, the government age pension, currently relied upon by a large majority of retirees. The scheme has been implemented reasonably smoothly by building on existing financial infrastructure for voluntary superannuation. This paper summarizes the historical background of mandatory superannuation in Australia, reviews its potential impact on saving and capital markets, and highlights some remaining policy issues. Perhaps the most important of these is the impact of the system on retirement decisions. A number of features of the system contribute to incentives favouring early retirement and continued reliance on the government pension. Also important is the increasing complexity of the system, a result of the layering of rule changes and grandfathering of existing rights at each stage of the process.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 5799.
Date of creation: Oct 1996
Date of revision:
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Other versions of this item:
- Malcolm Edey & John Simon, 1996. "Australia’s Retirement Income System: Implications for Saving and Capital Markets," RBA Research Discussion Papers rdp9603, Reserve Bank of Australia.
- E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
- G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bateman, Hazel & Kingston, Geoffrey & Piggott, John, 1993.
"Taxes, Retirement Transfers, and Annuities,"
The Economic Record,
The Economic Society of Australia, vol. 69(206), pages 274-84, September.
- Steven Morling & Robert Subbaraman, 1995. "Superannuation and Saving," RBA Research Discussion Papers rdp9511, Reserve Bank of Australia.
- Hazel Bateman & John Piggott, 1997. "Private Pensions in OECD Countries: Australia," OECD Labour Market and Social Policy Occasional Papers 23, OECD Publishing.
- Bateman, H. & Piggott, J., 1993. "The Superannuation Guarantee Charge: What Do We Know about Its Aggregate Impact?," Papers 93-6, New South Wales - School of Economics.
- M. E. Atkinson & John Creedy & D. M. Knox, 1995. "Planning Retirement Income in Australia: Routes through the Maze," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 28(4), pages 15-28.
- Gruen, F H, 1985. "Australian Government Policy on Retirement Incomes," The Economic Record, The Economic Society of Australia, vol. 61(174), pages 613-21, September.
- Srinivas, P.S. & Whitehouse, Edward & Yermo, Juan, 2000.
"Regulating private pension funds'structure, performance, and investments : cross-country evidence,"
Social Protection Discussion Papers
23302, The World Bank.
- Srinivas, P.S. & Whitehouse, Edward & Yermo, Juan, 2000. "Regulating private pension funds’ structure, performance and investments: cross-country evidence," MPRA Paper 14753, University Library of Munich, Germany.
- Garry F. Barrett & Yi-Ping Tseng, 2008.
"Retirement Saving in Australia,"
Canadian Public Policy,
University of Toronto Press, vol. 34(s1), pages 177-193, November.
- Garry Barrett & Yi-Ping Tseng, 2007. "Retirement Saving in Australia," Social and Economic Dimensions of an Aging Population Research Papers 177, McMaster University.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.