Household Savings and The Superannuation Guarantee

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Abstract

The purpose of this study is to examine how the compulsory employer
superannuation system interacts with voluntary savings. The study focuses in particular on the extent to which the existence of compulsory superannuation – and increases in the compulsory superannuation rate – might affect voluntary savings.
The study has two main findings. First, we demonstrate that compulsory superannuation, while associated with a significant reduction in private household saving, leads to net additional household wealth. Second, we find that compulsory superannuation encourages and leads to the reallocation of household wealth into property from other forms of investment
Original languageEnglish
Place of PublicationAustralia
PublisherAustralian Government, The Treasury
Commissioning bodyAustralian Federal Government
Number of pages52
Publication statusPublished - May 2020

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