Victoria Minister for Innovation Services and Small Business Louise Asher

Melbourne Looks Super As Australia Climbs The Retirement Incomes Ladder

Victor P Taffa

Minister for Innovation, Services and Small Business Louise Asher today announced $630,000 in funding for the Australian Centre for Financial Studies to prepare editions of the Melbourne Mercer Global Pension Index in 2011, 2012 and 2013.

The index is an initiative of the Melbourne-based Australian Centre for Financial Studies in consultation with the global consulting firm Mercer.

Ms. Asher launched the 2011 edition today and said the funding for the index will help position Melbourne as a world-class financial centre.

The new survey of international retirement income systems has found that Australia has moved up to number two in the sustainability, integrity and adequacy of system rankings, and focused attention on Melbourne’s key role in financial services research and funds management.

Ms. Asher said, while there would be continued debate in Australia about retirement incomes, the index was a great example of collaboration between the academic and financial sectors.

“It attracts widespread attention and is helping to promote our financial services strengths, specifically research and pension funds management, on the world stage.” Ms. Asher said.

The Melbourne Mercer Global Pension Index compares global retirement income systems in 16 countries and rates them based on adequacy, sustainability and integrity.

The 2011 index ranks Australia in second position (up from fourth last year) and for the first time includes India and Poland, and thus covers more than half the world’s population.

Ms. Asher said the Victorian Coalition Government had entered into the three year funding agreement with the Australian Centre for Financial Studies and Mercer so they can continue to produce and promote the Melbourne Mercer Global Pension Index.

“The Victorian Coalition Government is keenly aware of the importance of financial services within our economy, the contribution the sector makes to our living standards and its significant potential for future growth.” Ms. Asher said.

“The government’s support of this index reflects the fact that Melbourne is recognised as the national centre for superannuation investment which is supported by a range of funds managers, asset consultants and custody businesses.”

“With ageing populations in Australia and many other countries around the globe, further growing these capabilities is of both economic and social importance.”

Victoria’s financial services industry contributes about $36 Billion to the Victorian economy annually and employs more than 110,000 people.

Melbourne is at the centre of Australia’s managed funds, being the world’s fourth largest pool of funds under management, totalling more than $1.4 Trillion at the end of 2010.