Cbus Super statement regarding IMF report

23 October 2024
Media release

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.

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.