|
03-Dec-08 12:15 [Asia Pacific]
Superannuation suffers during crunch in Australia Although it is considered a project worth adopting by many countries, Australia's compulsory superannuation scheme is suffering in the face of the credit crunch, it has been stated.
Julie Shingleton of the Financial Times said that pension coverage levels were improved so much by the system that 90 per cent of employees were saving into funds, with 98 per cent of permanent workers contributing.
However, superannuation has taken a massive hit from falls in the stock market, so much so that the equity market has dropped by almost half over the last 12 months.
Reports widely suggest that worse is to come in the market, according to SuperRatings managing director Jeff Bresnahan.
He said: "Australian super funds are facing their biggest challenge since the introduction of compulsory superannuation in 1992 with the fallout of the international financial crisis affecting nearly all institutions."
SuperRatings aims to provide its countrymen with news on the superannuation industry with impartial and independent advice for journalists, investors and commentators.
Please click here for more UK employee pension news
The last 12 months have proven to be a very painful time for pension funds in Ireland, according to an investment consultant service's research this week.
Find out more>
In response to a worsening situation on the high street, major retailer Marks & Spencer (M&S) has announced 1,200 job cuts and big changes to the current final salary pension scheme they offer.
Find out more>
The value of the hours of unpaid overtime in the UK is £26.9 billion, according to the Trades Union Congress (TUC).
Find out more>
|
