Compulsory superannuation, while ensuring that individuals save for their retirement, has far-reaching implications for the broader economy. By leveraging demand for existing assets, it generates capital gains, inflates house prices, and cuts the purchasing power of wages. These effects contribute to financialization, increasing systemic risk, exacerbating inequality, and diverting resources away from productive investments. To secure both short-term retirement goals and long-term economic stability, policymakers must carefully reconsider how superannuation funds are managed and how they impact the broader economy. Ensuring a balance between secure retirement savings and a stable, equitable economy is essential for Australia’s future.
Compulsory superannuation, while ensuring that individuals save for their retirement, has far-reaching implications for the broader economy. By leveraging demand for existing assets, it generates capital gains, inflates house prices, and cuts the purchasing power of wages. These effects contribute to financialization, increasing systemic risk, exacerbating inequality, and diverting resources away from productive investments. To secure both short-term retirement goals and long-term economic stability, policymakers must carefully reconsider how superannuation funds are managed and how they impact the broader economy. Ensuring a balance between secure retirement savings and a stable, equitable economy is essential for Australia’s future.