Despite it being constantly tinkered by the Australian federal government, the country's retirement savings and income system has been ranked by the 2012 Mercer Global Pension Index as one of the world's highest and best managed.
Australia's superannuation, according to the latest survey, although it fell from 2011's top 2 spot, still remained in the top five of the world's best superannuation systems. For 2012, Australia is third to Denmark and The Netherlands, which are top 1 and top 2, respectively.
Spurred by an increase in the rise of pension fund assets as well as a jump in the work participation level among those aged between 55 and 64 years old, Australia's superannuation system for 2012 was graded at a value of 75.7, up from last year's 75.
The federal government's tinkering with the system, which included increasing mandatory super contributions from nine per cent to 12 per cent, all the while has been good and effective.
"This reform to Australia's superannuation system will make a significant impact on the future results and edge the country closer to top spot," said David Knox, Mercer senior partner and report author.
"Fundamentally the compulsory structure of Australian superannuation is an excellent platform for Australians in their retirement,'' Jeff Bresnahan, SuperRatings managing director, was quoted as saying by the Herald Sun.
"The issue that we've had continually over the last 20 years since it came in is that the Government continues to tinker with it and think it's just a wonderful play thing."
"If they stop playing with it and let Australians get a lot more confidence with the system then we will see an even better outcome going forward," he said.
The 2012 Melbourne Mercer Global Pension Index is commissioned by the Victorian Government and supported by the Australian Centre for Financial Studies.
Global leaders in retirement savings
1. Denmark 82.9
2. Netherlands 78.9
3. Australia 75.7
4. Sweden 73.4
5. Switzerland 73.3
6. Canada 69.2
7. UK 64.8
8. Chile 63.3
9. USA 59.0
10. Poland 58.2
(Source: Melbourne Mercer Global Pension Index)
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