Overview Of The Superannuation Industry

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Overview of the superannuation Industry The introduction of superannuation funds is to provide retirement and death benefits to its members as the increase in Australia’s ageing population has become problematic. By encouraging individuals to save more throughout their working life and to place those funds their retirement, the aim is to ensure a lesser proportion of public funds are directed towards pensions and enhance the living standards of retired Australians” (ALRC, 2013). The fund is set up as an indefinitely continuing fund. Superannuation funds are managed by a trustee and are regulated by APRA and ASIC. To be eligible to receive a serviceable tax treatment, a Superfund must be accommodating with the Superannuation Industry…show more content…
The Australian superannuation industry has also been reported to have increased in growth ever since the year of 2009, up to 2015 the growth exceeds the annual gross domestic product. The trends seen in recent year indicates that by lowering the cost, members benefit from greater values, which leads to a lower fee being passed onto its members. The main objective of the Australian superannuation industry is to come up with solutions that mainly focus the needs of a retired individual. However, this objective is restricted as the industry is meeting the demands of individual with limited capacity (KPMG,2015). Members of Australian Super have access to 14 different investment options that can be split into two categories either, members can either invest in a diversified fund or focus their investments on a single Sector(RateCity, 2016). Premixed options are diversified options that allow members to invest in a variety of asset classes such as shares, property, infrastructure, fixed interest and cash. While DIY Mix options are single asset class portfolios. Members are granted the ability to choose how much they want to invest in each in a mix that can also include one or more PreMixed options, this option gives its members more control over their allocation (INVESTMENT CHOICE GUIDE, 2016) . Each of these plans consists of 3 Socially Responsible strategies. The Australian Super grants their members the benefit of
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