AustralianSuper, which manages more than 2.2 million members, said that the Institute suggestions to not raise the super guarantee were erroneous and based on flawed research.
AustralianSuper chief executive Ian Silk said the fund supported raising the superannuation guarantee from 9.5 per cent to 12 per cent as soon as possible.
“The Grattan Institute’s suggestions are offensive to working Australians,” said Mr Silk.
Mr Silk said raising the guarantee would help improve the retirement outcome of millions of Australians.
“Increasing the SG to 12 per cent has bi-partisan support because it is the right thing,” he said.
Grattan Institute modelling assumptions do not represent the reality of daily life said Mr Silk.
“Grattan is using distorted data to try and prove an ideological point. Instead of consistently seeking to undermine the system, it should be focused on the super system’s key outcome, which is providing a dignified retirement for millions of Australians,” he said.
Mr Silk said Industry Super Australia had identified three key flaws in the research from Grattan;
- Assuming everyone can top up their super with extra voluntary contributions resulting in
lifetime contributions that could be up to 50 per cent greater than the basic SG; - Assuming a continuous uninterrupted 37 year working life and contributions, ignoring the
reality of many workers, especially women; - Assuming living standards in retirement should not keep pace with the rest of the community.
Mr Silk said the industry succeeded because of a vision of politicians, unions and employers and the arguments of Grattan were old news.
“These repeated and inaccurate suggestions from Grattan are a throwback to old arguments that have been trotted out by the opponents of the superannuation sector for many years,” he said.
