Melbourne University Professor of Finance, Kevin Davis, has said the enormous growth in Australia’s retirement savings sector should make the government reconsider how national savings are used to fund the economy.
The nation’s superannuation assets currently stands at $1.6 trillion, and are expected to grow to $7.6 trillion by 2033.
Self-managed super funds have said given the chance they invest in infrastructure funding, currently exclusively limited to large investors, such as pooled super funds and specialist asset managers.
Davis told AFR, Australia needs to start exploring the option of super as a source of funding to finance the nation’s economic activity.
However Financial Services Council chief executive, John Brogden, told Financial Review Sunday that it’s just not that simple.
“There are massive calls for superannuation to fund infrastructure in Australia. There are growing calls for super to fund bank capital requirements for lending. What we have to remember is the primary objective of superannuation, under law, is to get the best return for investors in order to provide them with an adequate retirement. It’s not about funding infrastructure. It’s not about funding banks.”
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