“The economics of superannuation are simple – sacrifice today for a higher standard of living in the future. But the psychology of superannuation is complex, fragile and finely balanced.” (John Brogden, The Australian, May 08, 2012). By 2035 funds invested in superannuation schemes will be over $6tn. A clear concern for the superannuation industry has been the battering in super balances since the GFC. Nominal annual super returns in OECD countries over three years to 2010 showed that Australia funds declined by 2.8 per cent. Slightly less than the decline in Spain and close to that of Portugal at 3.1 (source: OECD Global Pension Statistics). Approaching 90 per cent of invested funds in Australian super are owned by generations X and Y. For these reasons, the Sydney Business School is seeking to work with the superannuation industry to establish a national research centre that is designed to ensure a consistent authoritative approach to superannuation policy in Australia to the benefits of all stakeholders but especially to the benefit of members.
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