Skip to content
Finance Investment

Cbus Super statement regarding IMF report – Attacks on preservation a threat to market stability and worker savings

Cbus Superannuation 2 mins read

Cbus Super has welcomed the increasing recognition from the RBA and IMF of superannuation’s systemic role in the Australian economy, and the reminder of the risks to workers’ savings and national productivity posed by radical policy change.

Having a local pool of patient capital has been a significant national advantage during times of economic stress and crisis. Super funds have helped recapitalise businesses during the GFC and Covid-19 pandemic.

Cbus Chair Wayne Swan said the recent IMF statements on liquidity highlights the risks of cracking the system open and how workers and the economy benefit if the preservation principle remains at the heart of our retirement savings system.

Mr Swan said that it’s also a reminder of the critical shock absorbing role that our national savings played in past economic downturns like the GFC and Covid, and how that stabilising effect can only happen if funds have certainty and confidence about being able to invest over the long term.

Any move to remove preservation will have a similar impact on local share and bond markets, which is why moving to a 401K system is reckless, Mr Swan said.

Dumping the preservation principle would likely lead to short term market impacts, and the long-term result would be lower and more volatile returns for every Australian’s savings for retirement.

By putting greater liquidity demands on funds it necessitates investing less in illiquid assets.

Over the last forty years we have built super into one of the world’s leading retirement savings systems.

Policy makers need to be mindful of the impacts reckless actions can have on markets, returns and the productivity of the Australian economy.

ENDS

 

Media enquiries: David McNamara, 0455 144 464, david.mcnamara@cbussuper.com.au

 

All figures as at 30 June 2024 unless otherwise noted.

 

This information is about Cbus Super. It doesn’t account for your specific needs. Please consider your financial position, objectives and requirements before making financial decisions. Read the relevant Product Disclosure Statement (PDS) and Target Market Determination to decide if Cbus Super is right for you. Call 1300 361 784 or visit cbussuper.com.au.

 

Cbus is the leading Industry Super Fund representing those that help build, maintain and shape Australia. As one of Australia’s largest super funds, we provide superannuation and income stream accounts to more than 920,000 members (as at 30 June 2024) and we manage $94 billion of our members’ money (as at 30 June 2024). Our members include workers and retirees, their families and employers. As of April 2022, Cbus merged with Media Super and offers Media Super products. In May 2023 Cbus Super successfully completed its merger with EISS Super, establishing the Fund as the leading fund for energy and electrical workers in Australia.

 

Issued 23 October 2024, United Super Pty Ltd ABN 46 006 261 623 AFSL 233792 as Trustee for Construction and Building Unions Superannuation Fund (Cbus and/or Cbus Super) ABN 75 493 363 262.


Contact details:

David McNamara, 0455 144 464, david.mcnamara@cbussuper.com.au

More from this category

  • Finance Investment, Oil Mining Resources
  • 11/02/2025
  • 13:01
Jane Morgan Management

Amaero Fully Funded and Positioned for Commercialisation in FY2026

Sydney, Australia – 11 February 2025 – Amaero International Limited (ASX:3DA) is pleased to announce that it has successfully completed the bookbuild for an institutional placement to raise approximately A$22 million.Key Highlights Amaero successfully completed an institutional placement to raise A$22 million following strong support from existing cornerstone institutional investors as well as a new U.S-based institutional investor. Capital raising was fully subscribed by Pegasus Growth Capital, the Amaero Board, four lead institutional investors, and a new U.S-based institutional investor. Following the capital raise, Regal Funds Management and IFM Investors will join Pegasus Growth Capital and Fidelity International as substantial…

  • Contains:
  • Finance Investment
  • 11/02/2025
  • 09:11
Hut 8 Corp.

Hut 8 Schedules Full-Year 2024 Earnings Release and Conference Call

MIAMI, Feb. 10, 2025 (GLOBE NEWSWIRE) -- Hut 8 Corp. (Nasdaq | TSX: HUT) (“Hut 8” or the “Company”), a leading, vertically integrated operator of large-scale energy infrastructure and one of North America’s largest Bitcoin miners, today announced it will release financial results for the full year of 2024 before the market opens on March 3, 2025. The Company will host a conference call and webcast to review the results on the same day at 8:30 a.m. ET.Conference Call and Webcast DetailsDate: Monday, March 3, 2025Time: 8:30 a.m. ETInvestors can join the live webcast here. Analysts can register here.Supplemental Materials…

  • Finance Investment, Political
  • 11/02/2025
  • 07:30
Super Members Council

Cautionary tale: higher prices and fewer homeowners followed New Zealand’s super for a house scheme

New Zealand’s super for a house scheme is a cautionary tale for Australia, with new research confirming Kiwi house prices spiked and home ownership rates fell after the policy was introduced. The New Zealand lived experience shows a policy to bust open super for housing would not help first home buyers get into the market in Australia – this real-world example shows home prices rose even faster and homeownership rates fell. A Super Members Council examination of the detailed evidence from New Zealand shows that since the KiwiSaver HomeStart scheme started in 2010: house prices in New Zealand spiked upwards…

  • Contains:

Media Outreach made fast, easy, simple.

Feature your press release on Medianet's News Hub every time you distribute with Medianet. Pay per release or save with a subscription.