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 summarises 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 Reserve Bank of Australia in its series RBA Research Discussion Papers with number rdp9603.
Date of creation: Sep 1996
Date of revision:
Other versions of this item:
- Malcolm Edey & John Simon, 1996. "Australia's Retirement Income System: Implications for Saving and Capital Markets," NBER Working Papers 5799, National Bureau of Economic Research, Inc.
- E21 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
- G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
- G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
- O56 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Oceania
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.:
- 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.
- Kingston, G. & Piggott, J. & Bateman, H., 1992.
"Taxes, Retirement Transfers, and Annuities,"
92-18, New South Wales - School of Economics.
- Hazel Bateman & John Piggott, 1997. "Private Pensions in OECD Countries: Australia," OECD Labour Market and Social Policy Occasional Papers 23, OECD Publishing.
- 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.
- 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.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Paula Drew).
If references are entirely missing, you can add them using this form.