Treasurer Jim Chalmers says superannuation savings can and should play a role in supplying capital to megatrends that will reshape Australia’s economy and fiscal position.
In an exclusive foreword to the first edition of Retirement Magazine, the soon-to-be-launched sister publication to Professional Planner, the Treasurer stands firms on the government’s belief that it is appropriate for retirement savings to be deployed to a raft of national and international priorities.
“The pace of change in the global economy is accelerating and there’s always more to be done,” Chalmers writes. “We identified five big shifts that will shape our economy and fiscal position over the next 40 years – [shifts] from hydrocarbons to renewables; IT to AI; globalisation to fragmentation; younger to older populations; and the bigger role the services sector will play, particularly as the country ages.”
The list references key findings of the government’s Intergenerational Report published late last year.
“The flow of capital in our economy will help determine whether we succeed or fail amidst all this churn and change, and our almost $4 trillion super sector will be key,” Chalmers writes.
At the same time, he sees no inconsistency between the flow of capital to support success amid these megatrends and his intention to legislate an objective for the super system that enshrines the principle of preservation. The government’s proposed wording is “to preserve savings to deliver income for a dignified retirement, alongside government support, in an equitable and sustainable way”.
He says that principle underpins the government’s “ambitious” legislative agenda on super, which has included the payment of super on Paid Parental Leave and on pay day. But the idea of “preservation” remains contentious, with the federal opposition taking a more “flexible” vision for super to the next election, with its controversial policy allowing first home buyers to dip into super savings to purchase residential real estate.
Conexus Financial will launch Retirement Magazine to champion policy and commercial debate around the decumulation phase of super.
“I’m excited to see this new magazine come to fruition,” Chalmers writes, arguing that the super system must be adapting to an ageing population and retiring workforce.
Aimed at an audience of senior executives in the super industry, regulators and policymakers – alongside key members of the financial advice profession with specialisation in retirement – the publication will bring together a unique mix of academic research, journalism, industry thought leadership and practical solutions and management thinking from funds and their suppliers.
The Retirement Magazine launch partners are Allianz Retire+, Challenger, TAL, T. Rowe Price and Unisuper. For more information, follow Retirement Magazine on LinkedIn or sign up to our mailing list.
