23 Oct 2012

Australian superannuation system is ranked world #3

1:22 pm on 23 October 2012

Australia's $A1.4 trillion compulsory superannuation system is ranked the third best in the world by Mercer Consultants. The leaders were Denmark and the Netherlands.

Compulsory super was introduced 20 years ago by then-prime minister Paul Keating.

But for all the praise in its annual global pensions report, Mercer sees room for improvement.

For one thing, Australians have a much higher exposure to growth assets - such as equities - than any other nation.

Radio New Zealand's Sydney correspondent says that's meant a rocky ride for savers here in recent years.

A recent government review of the super system proposed a major attack on costs and changes to ensure better outcomes for employees who are in default funds.