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Mercer Global Pension Index shows 12 per cent super guarantee will improve Australia's superannuation system

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M e d i a R e l e a s e BILL SHORTEN MP Assistant Treasurer Minister for Financial Services and Superannuation 21 October 2010 MERCER GLOBAL PENSION INDEX SHOWS 12 PER CENT SUPER GUARANTEE WILL IMPROVE AUSTRALIA’S SUPERANNUATION SYSTEM A global report ranking the 14 best countries for retirement savings has reported that Australia’s superannuation system will be stronger as a result of the Gillard Government’s superannuation reforms including the increase in the superannuation guarantee (SG) to 12%. Assistant Treasurer and Minister for Financial Services and Superannuation Bill Shorten today welcomed the release of the second Melbourne Mercer Global Pension Index, which states: “Australia’s standing amongst the world’s best retirement savings and income systems will improve if the proposal to increase the superannuation guarantee to 12% is implemented...”. The Assistant Treasurer said “This well respected and independent global report has endorsed the Labor Government’s plans to raise super contributions from nine per cent to 12 per cent for all employees in Australia.” “While Australia’s ranking has dropped two places to fourth in this report, we are confident -and the Mercer survey results confirm - that our ranking will improve once we implement our proposed changes to the compulsory contribution level and efficiency measures.” “Measures to improve efficiency and make super easier to use and understand include using tax file numbers as the primary identifier of superannuation member accounts and the introduction of the simple, low-cost MySuper product.” Ranking fourth in the world this year is a very strong outcome, but the survey results show more needs to be done. We are one of only five countries to achieve B grade classification in the Index - a score between 65 and 80. It should be noted that none of the 14 countries were able to achieve an A grade status - a score of 80 or above.” “Though I am pleased we are up at the top of the pack, Labor’s superannuation reforms are about the provision of a secure and safe retirement for current and future generations of Australians.” The increase in the SG to 12% and the improvements to the efficiency of superannuation through the Cooper Review will add almost $150,000 to the retirement superannuation balance of an average 30 year old worker. “Australians should be very proud of the reforms made by the Hawke/Keating Governments nearly 20 years ago. These historic reforms have been great for retirees, assisted business growth and delivered in a huge way for the nation as a powerful $1.2 trillion savings pool.” “We are driven by delivering a more comfortable and secure retirement for Australians and growing an even bigger savings pool that can be invested in nation building projects,” the Assistant Treasurer said. ENDS