AustralianSuper has so far had over 300,000 requests for early release of super and has paid out $2 billion. But while other super funds have warned on the need for policy stability in the wake of the scheme, AustralianSuper believes it’s unlikely to change the face of the industry.
“Do we think that the super system will be a vehicle for early access in the next downturn or the one after, and does that change the way we manage portfolios?” CIO and deputy CEO Mark Delaney told media. “Part of the reason you can have a long-term investment horizon is because you consider the money is going to be there for a long time.
“But early access on the size and scale we’ve seen this time has been no problem.”
But Mr Delaney warned that while the early release super had been helpful to Australians experiencing financial hardship through the COVID-19 crisis, it would still have consequences for their retirement.
“Early release has worked for people; it’s given them a chance to get some money,” Mr Delaney said. “It has come at the cost of the long-term retirement savings, and that’s something they’ve got to be conscious about and try and rebuild them as quickly as possible, but it has gone well.”
Mr Delaney also fielded questions on AustralianSuper’s relationship with mining company Rio Tinto, which has drawn outrage from all corners of society following its destruction of a 46,000-year-old Aboriginal sacred site.
“We’ve had two or three conversations with Rio Tinto about this issue, expressing our displeasure and the importance of the issue, with senior management and managers on the board,” Mr Delaney said. “The company has been listening. There’s no doubt that this was the wrong thing to do, and if they had the time again they would not be in the position they are currently in.
“They have been quite approachable about the issue and we’re working the issue through with them.”
Mr Delaney said AustralianSuper would be following up with other mining companies to ensure there won’t be a “repeat of the circumstances”.
