Australia has second worst performing superannuation in OECD

AUSTRALIA'S superannuation funds recorded the second worst investment performance among the 30 OECD countries in 2008.

The OECD Pensions at a Glance 2009 report also notes Australian seniors had the fourth highest rate of old-age poverty in the OECD in 2006, more than double the average.

But the report finds the recent increase to the age pension could go some way to addressing the issue.

"Nearly 27 per cent of over-65s in Australia have incomes below the OECD poverty threshold (half of median household income),'' it says.

"Only Ireland, Korea and Mexico of the 30 OECD countries have higher old-age poverty rates.

The report welcomed the government's age pension increase, noting it was coming off a low base.

"Australia has a very high rate of old-age poverty and the fiscal room for manoeuvre to address the problem,'' said the report's lead author Edward Whitehouse.

"Public pension spending is only 3.5 per cent of national income in Australia compared with an average of over 7 per cent of GDP in OECD countries.''

A heavy reliance on equities in Australian superannuation fund investments was the catalyst for their poor performance, the report finds, with Australian funds having about 57 per cent of their funds in equities before the onset of the global financial crisis compared to an average of 36 per cent in the 20 OECD countries where data was available.

theaustralian.news.com.au 24 Jun 2009

This is deliberate politics/finance to rob Australians of their savings, whilst earning the highest commissions from the accounts. According to the government, ALL Australian superfunds were 'lost', during the 'financial crisis' (American Credit Crisis).

Whilst each year the Banks make higher profits, the consumer will be lucky to get 4.5% interest on their money. BLATANT Consumer Rip off.