The Market for Retirement Products in Australia
Australia introduced a mandatory retirement savings scheme in 1992. This built on pre-existing voluntary occupational plans. The new scheme has been very successful in expanding coverage and mobilizing large financial savings that are equal to clos...
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| Format: | Policy Research Working Paper |
| Language: | English |
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World Bank, Washington, DC
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2008/10/9918348/market-retirement-products-australia http://hdl.handle.net/10986/6934 |
| id |
okr-10986-6934 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCESS TO CAPITAL ACCOUNT HOLDER ACCOUNTING ADDITIONAL CONTRIBUTIONS ADMINISTRATIVE COST AFFORDABLE HOUSING ANNUAL CONTRIBUTIONS ANNUAL EARNINGS ANNUAL INCOME ANNUAL WAGE ASSET HOLDINGS AVERAGE EARNINGS AVERAGE WAGE BALANCE SHEET BANK DEPOSIT BANKS BENEFICIARIES BENEFICIARY BENEFIT ENTITLEMENTS BUDGET STATEMENTS BUSINESS OPERATIONS BUSINESS PLAN CALCULATION CAPITAL ADEQUACY CAPITAL INVESTMENT CAPITAL REQUIREMENTS CASH FLOW COMMUNITY SERVICES COMPETITIVE FINANCIAL SYSTEM COMPULSORY CONTRIBUTIONS CONSUMER CONSUMER PROTECTION CONSUMERS CONTRIBUTION CONTRIBUTION RATE CONTRIBUTION RATES CONTRIBUTION SCHEMES CREDIT RISK CREDIT UNIONS CURRENT EXPENDITURES CURRENT PENSIONERS DEBT DEFINED BENEFIT PENSIONS DEFINED CONTRIBUTION PENSION DEPOSIT DEPOSIT ACCOUNTS DEPOSITORS DISABILITY DISCLOSURE OF INFORMATION DISCOUNT RATE EARLY RETIREMENT EARNINGS ECONOMIC SHOCKS EMPLOYER CONTRIBUTION EMPLOYER CONTRIBUTIONS EQUITY MARKETS EXEMPT INVESTMENT EXPENDITURE FINANCIAL AFFAIRS FINANCIAL ASSETS FINANCIAL BEHAVIOR FINANCIAL CIRCUMSTANCES FINANCIAL GROUP FINANCIAL HARDSHIP FINANCIAL INDEPENDENCE FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL POSITION FINANCIAL SAVINGS FINANCIAL SECTOR FINANCIAL SECURITY FINANCIAL SYSTEM FINANCIAL SYSTEMS FISCAL POSITION FUND ASSETS GENERAL PUBLIC GOVERNMENT BUDGET GOVERNMENT LEGISLATION GOVERNMENT PENSION GOVERNMENT POLICIES GROSS INCOME HOME LOANS HOME OWNERSHIP HOMEOWNERS HOUSEHOLD WEALTH INCOME GROUPS INCOME INCREASES INCOME LEVEL INCOME STREAM INCOME STREAMS INCOME TAX INDEBTEDNESS INFLATION INSURANCE POLICY INTEREST RATES INTERNATIONAL BANK INVESTING INVESTMENT ACCOUNT INVESTMENT CHOICE INVESTMENT CHOICES INVESTMENT EARNINGS INVESTMENT INCOME INVESTMENT POLICY INVESTMENT RETURN INVESTMENT RETURNS INVESTMENT RISK INVESTMENT STRATEGY LEVEL OF CONTRIBUTION LEVEL OF RISK LEVELS OF RISK LIABILITY LIFE EXPECTANCY LIFE INSURANCE LIFE INSURANCE COMPANIES LIFE INSURANCE COMPANY LIFE INSURANCE POLICIES LIFE INSURANCE PREMIUMS LIFE INSURER LIFE INSURERS LIFETIME LIMITED INCOME LOAN LUMP SUM LUMP SUMS MARKET PARTICIPANT MARKET VALUE MARKETING MINIMUM BENEFIT MINIMUM BENEFITS MINIMUM CONTRIBUTION MINIMUM PENSION NATIONAL SAVING NET WORTH OCCUPATIONAL PLANS OCCUPATIONAL SCHEME OCCUPATIONAL SCHEMES OTHER ASSETS PAYMENT AMOUNTS PENSION PENSION AGE PENSION ASSET PENSION ASSETS PENSION BENEFIT PENSION BENEFITS PENSION COVERAGE PENSION ENTITLEMENT PENSION ENTITLEMENTS PENSION FRAMEWORK PENSION FUND PENSION FUNDS PENSION INCOME PENSION LITERATURE PENSION POWERS PENSION PROVIDERS PENSION REFORMS PENSION SYSTEM PENSION SYSTEMS PENSIONABLE AGE PENSIONER PENSIONERS PERSONAL INCOME POPULATION AGEING POVERTY ALLEVIATION PRESENT VALUE PRIVATE PENSION PRIVATE SAVINGS PROBABILITY PRODUCTIVITY PRUDENT RISK MANAGEMENT PRUDENTIAL REGULATION PRUDENTIAL STANDARDS PUBLIC PENSIONS RATE OF GROWTH RATES OF INTEREST REAL ESTATE REGULAR INCOME REGULAR PAYMENTS REGULATORY FRAMEWORK REPAYMENTS REPLACEMENT RATE REPLACEMENT RATES RESERVES RETIREMENT RETIREMENT AGE RETIREMENT BENEFIT RETIREMENT INCOME RETIREMENT INCOMES RETIREMENT PLANS RETIREMENT PRODUCTS RETIREMENT SAVINGS RETIREMENT SAVINGS ACCOUNT RISK TOLERANCE RISK TOLERANCE LEVELS SAFETY NET SALE SALES SECURITIES SOCIAL SECURITY SOLVENCY SOURCE OF RETIREMENT INCOME SOURCES OF INCOME STATUTORY FUND STATUTORY FUNDS STOCK MARKET SUPERANNUATION SYSTEM SUPERVISORY AUTHORITY TAX RATE TAX TREATMENT TAXABLE INCOME TERMINATION TREASURY TRUST DEED TRUSTEE TRUSTEES TYPES OF PENSIONS UNDERLYING ASSETS VALUATION VALUATIONS VALUE OF ASSETS VOLUNTARY SAVINGS WAGE GROWTH WAGES WITHDRAWAL |
| spellingShingle |
ACCESS TO CAPITAL ACCOUNT HOLDER ACCOUNTING ADDITIONAL CONTRIBUTIONS ADMINISTRATIVE COST AFFORDABLE HOUSING ANNUAL CONTRIBUTIONS ANNUAL EARNINGS ANNUAL INCOME ANNUAL WAGE ASSET HOLDINGS AVERAGE EARNINGS AVERAGE WAGE BALANCE SHEET BANK DEPOSIT BANKS BENEFICIARIES BENEFICIARY BENEFIT ENTITLEMENTS BUDGET STATEMENTS BUSINESS OPERATIONS BUSINESS PLAN CALCULATION CAPITAL ADEQUACY CAPITAL INVESTMENT CAPITAL REQUIREMENTS CASH FLOW COMMUNITY SERVICES COMPETITIVE FINANCIAL SYSTEM COMPULSORY CONTRIBUTIONS CONSUMER CONSUMER PROTECTION CONSUMERS CONTRIBUTION CONTRIBUTION RATE CONTRIBUTION RATES CONTRIBUTION SCHEMES CREDIT RISK CREDIT UNIONS CURRENT EXPENDITURES CURRENT PENSIONERS DEBT DEFINED BENEFIT PENSIONS DEFINED CONTRIBUTION PENSION DEPOSIT DEPOSIT ACCOUNTS DEPOSITORS DISABILITY DISCLOSURE OF INFORMATION DISCOUNT RATE EARLY RETIREMENT EARNINGS ECONOMIC SHOCKS EMPLOYER CONTRIBUTION EMPLOYER CONTRIBUTIONS EQUITY MARKETS EXEMPT INVESTMENT EXPENDITURE FINANCIAL AFFAIRS FINANCIAL ASSETS FINANCIAL BEHAVIOR FINANCIAL CIRCUMSTANCES FINANCIAL GROUP FINANCIAL HARDSHIP FINANCIAL INDEPENDENCE FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL POSITION FINANCIAL SAVINGS FINANCIAL SECTOR FINANCIAL SECURITY FINANCIAL SYSTEM FINANCIAL SYSTEMS FISCAL POSITION FUND ASSETS GENERAL PUBLIC GOVERNMENT BUDGET GOVERNMENT LEGISLATION GOVERNMENT PENSION GOVERNMENT POLICIES GROSS INCOME HOME LOANS HOME OWNERSHIP HOMEOWNERS HOUSEHOLD WEALTH INCOME GROUPS INCOME INCREASES INCOME LEVEL INCOME STREAM INCOME STREAMS INCOME TAX INDEBTEDNESS INFLATION INSURANCE POLICY INTEREST RATES INTERNATIONAL BANK INVESTING INVESTMENT ACCOUNT INVESTMENT CHOICE INVESTMENT CHOICES INVESTMENT EARNINGS INVESTMENT INCOME INVESTMENT POLICY INVESTMENT RETURN INVESTMENT RETURNS INVESTMENT RISK INVESTMENT STRATEGY LEVEL OF CONTRIBUTION LEVEL OF RISK LEVELS OF RISK LIABILITY LIFE EXPECTANCY LIFE INSURANCE LIFE INSURANCE COMPANIES LIFE INSURANCE COMPANY LIFE INSURANCE POLICIES LIFE INSURANCE PREMIUMS LIFE INSURER LIFE INSURERS LIFETIME LIMITED INCOME LOAN LUMP SUM LUMP SUMS MARKET PARTICIPANT MARKET VALUE MARKETING MINIMUM BENEFIT MINIMUM BENEFITS MINIMUM CONTRIBUTION MINIMUM PENSION NATIONAL SAVING NET WORTH OCCUPATIONAL PLANS OCCUPATIONAL SCHEME OCCUPATIONAL SCHEMES OTHER ASSETS PAYMENT AMOUNTS PENSION PENSION AGE PENSION ASSET PENSION ASSETS PENSION BENEFIT PENSION BENEFITS PENSION COVERAGE PENSION ENTITLEMENT PENSION ENTITLEMENTS PENSION FRAMEWORK PENSION FUND PENSION FUNDS PENSION INCOME PENSION LITERATURE PENSION POWERS PENSION PROVIDERS PENSION REFORMS PENSION SYSTEM PENSION SYSTEMS PENSIONABLE AGE PENSIONER PENSIONERS PERSONAL INCOME POPULATION AGEING POVERTY ALLEVIATION PRESENT VALUE PRIVATE PENSION PRIVATE SAVINGS PROBABILITY PRODUCTIVITY PRUDENT RISK MANAGEMENT PRUDENTIAL REGULATION PRUDENTIAL STANDARDS PUBLIC PENSIONS RATE OF GROWTH RATES OF INTEREST REAL ESTATE REGULAR INCOME REGULAR PAYMENTS REGULATORY FRAMEWORK REPAYMENTS REPLACEMENT RATE REPLACEMENT RATES RESERVES RETIREMENT RETIREMENT AGE RETIREMENT BENEFIT RETIREMENT INCOME RETIREMENT INCOMES RETIREMENT PLANS RETIREMENT PRODUCTS RETIREMENT SAVINGS RETIREMENT SAVINGS ACCOUNT RISK TOLERANCE RISK TOLERANCE LEVELS SAFETY NET SALE SALES SECURITIES SOCIAL SECURITY SOLVENCY SOURCE OF RETIREMENT INCOME SOURCES OF INCOME STATUTORY FUND STATUTORY FUNDS STOCK MARKET SUPERANNUATION SYSTEM SUPERVISORY AUTHORITY TAX RATE TAX TREATMENT TAXABLE INCOME TERMINATION TREASURY TRUST DEED TRUSTEE TRUSTEES TYPES OF PENSIONS UNDERLYING ASSETS VALUATION VALUATIONS VALUE OF ASSETS VOLUNTARY SAVINGS WAGE GROWTH WAGES WITHDRAWAL Brunner, Gregory Gordon Thorburn, Craig The Market for Retirement Products in Australia |
| geographic_facet |
East Asia and Pacific Australia |
| relation |
Policy Research Working Paper; No. 4749 |
| description |
Australia introduced a mandatory
retirement savings scheme in 1992. This built on
pre-existing voluntary occupational plans. The new scheme
has been very successful in expanding coverage and
mobilizing large financial savings that are equal to close
to 100 percent of GDP. However, Australia does not impose
restrictions on payout options. The payout phase used to be
dominated by lump sum withdrawals, which accounted for 80
percent of benefit payments as recently as 2002. But pension
payments increased in recent years and now represent 45
percent of total payments. The vast majority of these
pension payments take the form of term annuities and
allocated annuities. The latter are similar to phased
withdrawals in Chile but run for fixed terms of up to 25
years rather than for lifetime terms. The demand for life
annuities and lifetime phased withdrawals is very limited.
The paper discusses the factors that have shaped the pattern
of demand for retirement products, including the
availability of the universal age pension and the effect of
clawback provisions, the impact of the high level of home
ownership, and the widespread preference of retiring workers
for reliance on self-annuitization. The paper also reviews
the prudential regulation of superannuation funds and life
insurance companies. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Brunner, Gregory Gordon Thorburn, Craig |
| author_facet |
Brunner, Gregory Gordon Thorburn, Craig |
| author_sort |
Brunner, Gregory Gordon |
| title |
The Market for Retirement Products in Australia |
| title_short |
The Market for Retirement Products in Australia |
| title_full |
The Market for Retirement Products in Australia |
| title_fullStr |
The Market for Retirement Products in Australia |
| title_full_unstemmed |
The Market for Retirement Products in Australia |
| title_sort |
market for retirement products in australia |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2008/10/9918348/market-retirement-products-australia http://hdl.handle.net/10986/6934 |
| _version_ |
1764401352486682624 |
| spelling |
okr-10986-69342021-04-23T14:02:32Z The Market for Retirement Products in Australia Brunner, Gregory Gordon Thorburn, Craig ACCESS TO CAPITAL ACCOUNT HOLDER ACCOUNTING ADDITIONAL CONTRIBUTIONS ADMINISTRATIVE COST AFFORDABLE HOUSING ANNUAL CONTRIBUTIONS ANNUAL EARNINGS ANNUAL INCOME ANNUAL WAGE ASSET HOLDINGS AVERAGE EARNINGS AVERAGE WAGE BALANCE SHEET BANK DEPOSIT BANKS BENEFICIARIES BENEFICIARY BENEFIT ENTITLEMENTS BUDGET STATEMENTS BUSINESS OPERATIONS BUSINESS PLAN CALCULATION CAPITAL ADEQUACY CAPITAL INVESTMENT CAPITAL REQUIREMENTS CASH FLOW COMMUNITY SERVICES COMPETITIVE FINANCIAL SYSTEM COMPULSORY CONTRIBUTIONS CONSUMER CONSUMER PROTECTION CONSUMERS CONTRIBUTION CONTRIBUTION RATE CONTRIBUTION RATES CONTRIBUTION SCHEMES CREDIT RISK CREDIT UNIONS CURRENT EXPENDITURES CURRENT PENSIONERS DEBT DEFINED BENEFIT PENSIONS DEFINED CONTRIBUTION PENSION DEPOSIT DEPOSIT ACCOUNTS DEPOSITORS DISABILITY DISCLOSURE OF INFORMATION DISCOUNT RATE EARLY RETIREMENT EARNINGS ECONOMIC SHOCKS EMPLOYER CONTRIBUTION EMPLOYER CONTRIBUTIONS EQUITY MARKETS EXEMPT INVESTMENT EXPENDITURE FINANCIAL AFFAIRS FINANCIAL ASSETS FINANCIAL BEHAVIOR FINANCIAL CIRCUMSTANCES FINANCIAL GROUP FINANCIAL HARDSHIP FINANCIAL INDEPENDENCE FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL POSITION FINANCIAL SAVINGS FINANCIAL SECTOR FINANCIAL SECURITY FINANCIAL SYSTEM FINANCIAL SYSTEMS FISCAL POSITION FUND ASSETS GENERAL PUBLIC GOVERNMENT BUDGET GOVERNMENT LEGISLATION GOVERNMENT PENSION GOVERNMENT POLICIES GROSS INCOME HOME LOANS HOME OWNERSHIP HOMEOWNERS HOUSEHOLD WEALTH INCOME GROUPS INCOME INCREASES INCOME LEVEL INCOME STREAM INCOME STREAMS INCOME TAX INDEBTEDNESS INFLATION INSURANCE POLICY INTEREST RATES INTERNATIONAL BANK INVESTING INVESTMENT ACCOUNT INVESTMENT CHOICE INVESTMENT CHOICES INVESTMENT EARNINGS INVESTMENT INCOME INVESTMENT POLICY INVESTMENT RETURN INVESTMENT RETURNS INVESTMENT RISK INVESTMENT STRATEGY LEVEL OF CONTRIBUTION LEVEL OF RISK LEVELS OF RISK LIABILITY LIFE EXPECTANCY LIFE INSURANCE LIFE INSURANCE COMPANIES LIFE INSURANCE COMPANY LIFE INSURANCE POLICIES LIFE INSURANCE PREMIUMS LIFE INSURER LIFE INSURERS LIFETIME LIMITED INCOME LOAN LUMP SUM LUMP SUMS MARKET PARTICIPANT MARKET VALUE MARKETING MINIMUM BENEFIT MINIMUM BENEFITS MINIMUM CONTRIBUTION MINIMUM PENSION NATIONAL SAVING NET WORTH OCCUPATIONAL PLANS OCCUPATIONAL SCHEME OCCUPATIONAL SCHEMES OTHER ASSETS PAYMENT AMOUNTS PENSION PENSION AGE PENSION ASSET PENSION ASSETS PENSION BENEFIT PENSION BENEFITS PENSION COVERAGE PENSION ENTITLEMENT PENSION ENTITLEMENTS PENSION FRAMEWORK PENSION FUND PENSION FUNDS PENSION INCOME PENSION LITERATURE PENSION POWERS PENSION PROVIDERS PENSION REFORMS PENSION SYSTEM PENSION SYSTEMS PENSIONABLE AGE PENSIONER PENSIONERS PERSONAL INCOME POPULATION AGEING POVERTY ALLEVIATION PRESENT VALUE PRIVATE PENSION PRIVATE SAVINGS PROBABILITY PRODUCTIVITY PRUDENT RISK MANAGEMENT PRUDENTIAL REGULATION PRUDENTIAL STANDARDS PUBLIC PENSIONS RATE OF GROWTH RATES OF INTEREST REAL ESTATE REGULAR INCOME REGULAR PAYMENTS REGULATORY FRAMEWORK REPAYMENTS REPLACEMENT RATE REPLACEMENT RATES RESERVES RETIREMENT RETIREMENT AGE RETIREMENT BENEFIT RETIREMENT INCOME RETIREMENT INCOMES RETIREMENT PLANS RETIREMENT PRODUCTS RETIREMENT SAVINGS RETIREMENT SAVINGS ACCOUNT RISK TOLERANCE RISK TOLERANCE LEVELS SAFETY NET SALE SALES SECURITIES SOCIAL SECURITY SOLVENCY SOURCE OF RETIREMENT INCOME SOURCES OF INCOME STATUTORY FUND STATUTORY FUNDS STOCK MARKET SUPERANNUATION SYSTEM SUPERVISORY AUTHORITY TAX RATE TAX TREATMENT TAXABLE INCOME TERMINATION TREASURY TRUST DEED TRUSTEE TRUSTEES TYPES OF PENSIONS UNDERLYING ASSETS VALUATION VALUATIONS VALUE OF ASSETS VOLUNTARY SAVINGS WAGE GROWTH WAGES WITHDRAWAL Australia introduced a mandatory retirement savings scheme in 1992. This built on pre-existing voluntary occupational plans. The new scheme has been very successful in expanding coverage and mobilizing large financial savings that are equal to close to 100 percent of GDP. However, Australia does not impose restrictions on payout options. The payout phase used to be dominated by lump sum withdrawals, which accounted for 80 percent of benefit payments as recently as 2002. But pension payments increased in recent years and now represent 45 percent of total payments. The vast majority of these pension payments take the form of term annuities and allocated annuities. The latter are similar to phased withdrawals in Chile but run for fixed terms of up to 25 years rather than for lifetime terms. The demand for life annuities and lifetime phased withdrawals is very limited. The paper discusses the factors that have shaped the pattern of demand for retirement products, including the availability of the universal age pension and the effect of clawback provisions, the impact of the high level of home ownership, and the widespread preference of retiring workers for reliance on self-annuitization. The paper also reviews the prudential regulation of superannuation funds and life insurance companies. 2012-06-01T21:14:49Z 2012-06-01T21:14:49Z 2008-10 http://documents.worldbank.org/curated/en/2008/10/9918348/market-retirement-products-australia http://hdl.handle.net/10986/6934 English Policy Research Working Paper; No. 4749 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research East Asia and Pacific Australia |