Superannuation Reimagined: Moving Beyond the Origins to an Indigenous Focus

Abstract

Retirement income systems, such as superannuation, are meant to be non-discriminatory and consider disadvantage faced by members of society. There are significant differences between the life expectancies of Indigenous and non-Indigenous peoples. The gap in life expectancies is not considered when determining when Indigenous peoples can retire. In this paper, we revisit what has been written about Indigenous peoples having early access to superannuation. To understand the financial implications of early access to superannuation we use existing data to model what early access to superannuation would look like at age 45, 50, 55 and 60. Based on our modelling we reveal the projected shortfalls and in some cases surpluses in projected superannuation balances. Last, we propose ways to close the superannuation gap and create intergenerational wealth for Indigenous peoples by adding a fourth pillar to the current three pillar retirement income system.