In a statement, UniSuper said the new retirement adequacy index was developed because its members tend to be professionals with higher salaries, making the ASFA Retirement Standard somewhat “misleading”.
UniSuper chief executive Kevin O’Sullivan said the new index uses salary-based targets when determining retirement adequacy, rather than the fixed amounts in the ASFA benchmark.
“While a dollar-based approach can assist members to understand retirement targets, it is likely to be a better measure for lower income earners,” Mr O’Sullivan said.
“Salary-based targets that measure an individual’s retirement income as a percentage of their pre-retirement salary are likely to be a better measure for middle to higher income earners.
“While a dollar-based approach can assist members to understand retirement targets, it is likely to be a better measure for lower income earners,” he said.
UniSuper engaged global advisory firm Willis Towers Watson to examine the retirement preparedness of its members against this new benchmark using each individual member’s salary, age, contribution patterns and current balance, the UniSuper statement said.
The announcement follows the launch of a comparator tool that allows UniSuper members to compare their super balances with their peers.
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