Nearly forty years ago now, Australia’s leaders began making plans to avert what they knew could eventually become a crisis. With an unprecedented population bubble at that time settling down into adulthood, careers, and the raising of families, the associated costs of retirement would have been jaw-dropping on their own. Even with that huge new generation of adults begin their working lives, though, employers in Australia were increasingly abandoning their traditional retirement commitments. Instead of the defined benefit pensions that had previously been so common, employers were starting to direct their employees toward plans that offered much less in the way of security.
Had that situation been allowed to continue without intervention, it is likely that many of today’s retirees would be confronting some undesirable prospects. Instead, however, the Australia government created a new set of rules designed to ensure financial security and stability later in life for workers throughout the country. By mandating that employers contribute for each worker to a Superannuation fund that would pay off in retirement, the government helped create a brighter future for many.
Since then, the options available to Australian companies and workers have multiplied greatly. Participation in the system is still mandatory for most, but there are many more different choices as to how the money that is deposited might be invested. Most common of all likely remain funds run by companies themselves or investment services that specialize in particular offerings, but there are also some more interesting and flexible options available to those who seek them.
Seeking improved returns in conjunction with a good dose of safety, for example, many companies and individuals have since begun to favor the multi industry super fund. Instead of the relatively focused nature of some alternatives, a fund of this kind will allocate its capital between companies in a range of carefully selected industries. The NSF Super fund described at superannuation, for example, continually adjusts both the selection of industries and other factors in order to account for evolving economic conditions.
For Australians who wish to become more involved in their retirement plans or companies seeking to do the same for their workers, options of this kind can easily be appealing. While the system itself is one that has proved to be capable of providing for comfortable retirement for many, pursuing still better performance can lead to even more satisfying results. Given the ease of switching to more specialized alternatives of these kinds, such options seem likely to become even more popular in the future.