The superfund industry has expressed its pleasure at the government’s decision to increase the super guarantee to 12 per cent, but says it is disappointed at the length of time it will take to implement the change.
Once again, the superannuation sector is resisting government proposals that would change the industry, and is strongly dissenting against any move towards a compulsory government annuity scheme, in which retired investors can hand either all or part of their superannuation and receive an annual income.
The level of confidence Australians have in the superannuation industry has fallen to its lowest level, with many worrying that they will not have enough retirement income following the global financial crisis, which reaped havoc on super fund balances.
Kevin Rudd’s government says it full intends to follow through with controversial new regulations for the superannuation industry despite vehement opposition from the sector.
Retail and industry superannuation funds have joined forces in a bid to lobby the government against implementing new regulations for the $1.2 trillion industry, arguing that such changes would only result in higher costs and increased complexity.
According to a newspaper report in The Age, Australian banking major ANZ is said to be in talks to acquire fund manager IOOF Holdings. The negotiations are believed to be at a preliminary stage.
The Super Fund industry lobby, known as the Association of Superannuation Funds of Australia (ASFA) is pressing the Federal Government to raise Australian workers superannuation guarantees to 12 per cent before the new budget is announced in May.
The superannuation (Super) fund industry is set to face increasing pressure to consolidate in 2010 as a direct result of the impact that was felt by the financial crisis that hit the industry hard during the last half of 2008 and much of 2009.
Australia’s super fund industry will be allowed to continue the controversial practice of stock lending, but may end up being more tightly regulated in order to curtail any elevated risks that they may face as a result of the practice.
October was the first month of negative returns for superannuation (super) funds, after seven consecutive months of gains, which is the first suggestion that the recovery in the pension fund industry may be faltering.