Global Pension Transparency Benchmark | Countries – Australia 2024

Australia.

Australia ranked 2nd with an overall average total score of 82.

The first pillar of Australia’s pension system is a means-tested, unfunded age-based pension that provides a basic benefit. The backbone of the country’s pension system is the second pillar, a mandatory defined contribution system with minimum required contributions for all workers which was introduced in 1992. Before the compulsory superannuation system was introduced, defined benefit schemes were the more popular form of occupational pension provision.

The environment is competitive, individuals are permitted to select the ‘superannuation fund’ of their choice for their contributions. There are many superannuation providers, or supers, which can generally be categorised as either being 1) not-for-profit industry funds or 2) retail funds which are offered to the public by financial services companies. Most of the largest funds are in the not-for-profit industry sector.

Overall Factor Ranking

Cost

Governance

Performance

Responsible Investment

Overall Results
Australia.

Factor	Min	Avg	Max	Rank
Cost	68	77	90	3
Governance	92	95	98	2
Performance	61	78	92	3
Responsible Investing	56	79	94	6
Total	71	82	89	2

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Funds Analysed

Australian Retirement Trust

Australian Retirement Trust is the superannuation fund formed through the merger of Sunsuper and QSuper. It is one of Australia’s largest super funds and proud to take care of over A$240 billion in retirement savings for 2.2 million members. As a fund that works for members, not shareholders, it is committed to working in members’ best interests, and is committed to returning profits to them as lower fees and better services.

AustralianSuper

AustralianSuper is the largest Australian superannuation and pension fund, with approximately one in every 10 Australian workers as members. It is a not-for-profit industry superannuation fund.

Aware Super

Aware Super is a not-for-profit industry fund with a new name but a history going back to 1992. It is Australia’s third largest largest fund, with $150 billion under management following the merger between First State Super, VicSuper and WA Super.

Future Fund

Future Fund is Australia’s sovereign wealth fund, responsible for investing for the benefit of future generations of Australians. Future Fund was established in 2006 to strengthen the Commonwealth’s long-term financial position and manages six public asset funds.

UniSuper

UniSuper is a not-for-profit superannuation fund with origins as a provider of superannuation for employees of Australia’s higher education and research sector.