Australiaâ€™s retirement incomes system has been dominated for over 100 years by a flat-rate, means-tested, general revenue-financed age pension. This has been very effective in protecting the elderly from poverty and limiting the costs to government. The system has not, however, effectively addressed a second key objective of maintaining living standards in retirement because of its poorly regulated occupational superannuation arrangements and the absence of a social insurance scheme. Over recent decades, Australia has pioneered an alternative approach to address this second objective to other countriesâ€™ public, defined-benefit (social insurance) pension schemes that have proven to present significant financial burdens particularly with demographic change. This alternative approach draws on the World Bankâ€™s â€˜multi-pillarâ€™ framework, supplementing the age pension â€˜foundation pillarâ€™, not with social insurance but with a set of private â€˜pillarsâ€™: mandated private contributions, optional private contributions and additional private savings, particularly through home ownership.
|Title of host publication||Hybrid Public Policy Innovations: Contemporary Policy Beyond Ideology|
|Editors||Mark Fabian and Robert Breunig|
|Place of Publication||London|
|Publication status||Published - 2018|