Prime Minister Anthony Albanese has been urged to keep politics out of Australians’ retirement savings after describing the nation’s $4.5 trillion superannuation pool as a “national asset”.
Albanese wants to see Australia’s retirement savings play a greater role in supporting the nation’s economy, he told the annual superannuation lending roundtable on Tuesday.
“There is a real potential to see these funds as a national asset that can be used more appropriately and get better returns as well, not just for individuals and for retirees, but for the nation,” Albanese said.
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Former Victorian premier Daniel Andrews echoed the proposal, saying superannuation could be invested in addressing “productivity challenges” such as housing, infrastructure, the energy transition, water security and pandemic preparedness.
“That’s a wholly efficient and good repurposing of a portion of that national savings pool,” Andrews said.
The comments prompted mixed reactions from leaders across Australia’s banking and superannuation sectors.
The Association of Superannuation Funds of Australia (ASFA) said super funds are legally required to act in members’ best financial interests, while adding that investments that generate returns can also benefit the broader economy.
“Super funds invest significantly in Australia, including in local businesses and infrastructure, and sometime alongside government,” CEO Mary Delahunty told 7NEWS.com.au.
“ASFA’s research estimates that the economic boost from super funds’ investment in local businesses means every Australian gains around $2,500 in pre-tax wages every year.
“Super funds will pursue investments if they deliver real investment returns to members. Often those investments deliver benefits to the nation, too. So it’s a double dividend.”
But Westpac has pushed back against the proposal, warning governments should not influence where Australians’ retirement savings are invested.
“One thing I would call out is: don’t touch the super complex, don’t direct it, don’t tell it where to go,” Westpac chief executive Anthony Miller said.
“Focus on the member obligations we have and, therefore, focus on the portfolio we must construct for them as they move from (the accumulation) phase to the next phase (retirement).”
Miller said the focus should instead be on governance.
“Let’s get stuck into governance,” he said.
“Let’s make sure these funds understand the responsibility they have, and that the governance is there.
“Liquidity is not a risk class that the super complex has ever had to worry about, because all they ever had was money coming in.”
