AIST is the peak industry body for the $450 billion not-for-profit super sector which includes industry, corporate and public sector funds covering
the super interests of nearly 2/3 of the Australian workforce.
Further enquires: Janet de Silva, AIST media 0425 745 095
DISCLAIMER
This summary is intended as information only and should not be used in the place of legal or other advice. Australian Institute of Superannuation Trustees expressly
disclaims all liability and responsibility to any person who relies in full, or in part, on any of the information contained in this summary, or is omitted from it.
Ground Floor, 215 Spring St
¦ MELBOURNE ¦ VIC ¦ 3000 ¦ Telephone: 03 8677 3800¦ Fax: 03 8677 3801
© 2009 Australian Institute of Superannuation Trustees ABN 19 123 284 275
Tuesday January 26th
AIST welcomes Henry focus on retirement income security but warns 9% won’t be enough
The Australian Institute of Superannuation Trustees (AIST) today welcomed reported
proposals from the Henry Tax Review for retirees to swap super payments for a
government-provided guaranteed lifetime income scheme. The concept is believed to be
among a number of measures contained in the Henry Tax Review findings currently before
Treasurer Wayne Swan.
AIST CEO Fiona Reynolds said new policy measures were needed to address the growing
problem of Australians outliving their retirement savings and to help alleviate the post-GFC
concerns of many retirees about the volatility and security of their investment returns.
“Longevity risk and strengthening income security for an aging population are major
challenges facing Australia,” said Ms Reynolds.
“The ability to exchange super payments for a government-provided guaranteed lifetime
income could open a valued and flexible option for retirees, particularly those with small
super balances and limited assets.”
Ms Reynolds said many workers reaching retirement age in the next decade would do so
without the benefit of a working lifetime of full super contributions. AIST research shows
that the average annual Superannuation Guarantee SG rate for most Australian workers
over the age of 50 is less than 5 per cent.
“With improvements to life expectancy it is clear that a significant proportion of retirees,
particularly women, will exhaust any super and be totally reliant on the age pension for
income in their final years,” she said.
Other reported proposals in the Henry Review include re-balancing the tax treatment of
super to provide greater equity and incentive for low to middle-income earners.
Ms Reynolds said AIST had long-called for a fairer tax system for super, including for the
removal of the rebate of the 15% contribution tax for low income earners.
However AIST remains concerned that the Henry committee appears to have found no case
for lifting compulsory super (SG) contributions above the current level of 9 per cent.
Ms Reynolds said AIST would continue to advocate for a rise in SG to 12 percent. “Research
consistently shows that 9 per cent compulsory super over a working lifetime is still not
enough for most Australians to enjoy a financially comfortable retirement,” said Ms
Reynolds.
Further media enquiries: AIST CEO Fiona Reynolds: 0408 336 116; AIST Media Manager
Janet de Silva: 0425 745 095
AIST is the peak industry body for the $450 billion not-for-profit super sector which includes industry, corporate and public sector funds covering
the super interests of nearly 2/3 of the Australian workforce.
Further enquires: Janet de Silva, AIST media 0425 745 095
DISCLAIMER
This summary is intended as information only and should not be used in the place of legal or other advice. Australian Institute of Superannuation Trustees expressly
disclaims all liability and responsibility to any person who relies in full, or in part, on any of the information contained in this summary, or is omitted from it.
Ground Floor, 215 Spring St
¦ MELBOURNE ¦ VIC ¦ 3000 ¦ Telephone: 03 8677 3800¦ Fax: 03 8677 3801
© 2009 Australian Institute of Superannuation Trustees ABN 19 123 284 275
NEWS 
