Early retirement due to ill health imposes a significant economic cost. Work VISES undertook for the APEC Business Advisory Committee and the US Chamber of Commerce estimated the economic cost of early retirement due to ill health (that is, retired early from age 50-64 due to ill health) averaged 2.4 per cent of GDP for a cross section of eighteen countries in 2015.
Along with the age pension and voluntary savings, superannuation forms the so-called ‘three pillars’ of Australia’s retirement system.
These ‘three pillars’ form the foundation of the retirement financing of working Australians and, on a broader scale, contribute to social wellbeing.
This report addresses the question of how superannuation trustees, whose funds dominate Australian capital markets, can ensure that they are investing their assets for the public good — in particular how to fund public infrastructure.