Australian Retirement System: Significance of Pillars 3 and 4 in Achieving an Adequate Standard of Living in Retirement
Posted: 10 Jul 2019
Date Written: July 9, 2019
Most research relating to the adequacy of the Australian retirement system has concentrated on Pillars 1 and 2. This paper indicates that there is a high probability that Pillars 3 and 4 will be needed to ensure an adequate standard of living in retirement, and in most scenarios, the contribution to retirement adequacy from Pillars 3 and 4 is very significant. We include an international comparison of equivalent Pillars 1 and 2 costs and conclude this analysis supports our results.
Keywords: Australian Retirement System, Superannuation Guarantee Levy, Age Pension
JEL Classification: G11, G17, G18, I3, J14, J17
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