An Analysis of the Variability of Outcomes for the Mandatory Components of the Australian Retirement System

15 Pages Posted: 1 Dec 2020

See all articles by John R. Evans

John R. Evans

Centre for Analysis of Complex Financial Systems

Abdul Razeed

The University of Sydney

Date Written: October 7, 2020

Abstract

The outcome of the mandatory components of the Australian retirement system for both retirees and the Australian Government will vary over time based on a complex interrelationship of wage growth, investment returns, (un)employment, and longevity of retirees. This paper considers the impact of variations in these factors and concludes that for the mean income household, real investment returns are the critical determinant of retiree outcomes, whilst for the Australian Government, longevity of retirees is the critical factor.

Keywords: Retirement Adequacy, Superannuation Guarantee Levy, Wage Growth, Investment Returns, Longevity

JEL Classification: D14, E6, G5, I3

Suggested Citation

Evans, John R. and Razeed, Abdul, An Analysis of the Variability of Outcomes for the Mandatory Components of the Australian Retirement System (October 7, 2020). Available at SSRN: https://ssrn.com/abstract=3707284 or http://dx.doi.org/10.2139/ssrn.3707284

John R. Evans (Contact Author)

Centre for Analysis of Complex Financial Systems ( email )

PO Box 363
Summer Hill, 2130
Australia

Abdul Razeed

The University of Sydney ( email )

University of Sydney
Sydney, NSW 2006
Australia

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