Conservatives claim Australia’s compulsory super is failing, experts dispute

Conservative figures Andrew Bragg and Pauline Hanson have denounced Australia’s compulsory superannuation as one of the nation’s biggest policy failures, arguing it fails to lower the budget or keep retirees off the age pension. Bragg cited a Treasury intergenerational report showing pension spending hovering just over 2 % of GDP and super tax concessions eventually surpassing that level. The report also highlights that total retirement costs are projected to remain roughly 4-4.5 % of GDP despite an ageing population.

Contrary to the critics, the same data predicts a rising proportion of Australians will fund their own retirements, climbing from 29 % to 38 % by 2050. Actuary David Knox, formerly of Mercer, says Australia will likely have the lowest aged-pension cost in the OECD by 2030, a contrast to rising costs elsewhere. International comparisons from the OECD show other countries’ pension spending could reach double Australia’s projected share by mid-century. The analysis suggests the super system, while imperfect, is delivering fiscal stability and greater retirement self-sufficiency.