Question

Mark, age 45, is considering increasing the amount he contributes to superannuation in excess of his employer's SG contributions but is confused about the Australian pension system. You advise Mark of the main parts of the Australian pension system, known as the 'three pillars'. Your advice includes:

a. the government means-tested pension, pension payments from superannuation funds and voluntary superannuation contributions

b. voluntary superannuation contributions, taxation concession and mandatory superannuation contributions.

c. mandatory superannuation contributions, voluntary superannuation contributions and pension payments from superannuation funds

d. the government means-tested pension, mandatory superannuation contributions and voluntary superannuation contributions

Answer 1

To ensure that the retirement policy is sustainable in contex of age, Australia has pursued three pillar approach comprising of following
-Mean tested and publicly funded age pension
- Compulsory private savings through supper annualtion Gurantee arrangement
- Voluntary private savings , supported by taxation concession and direct goverment payments for low income earners

Thus ans d.) the government means-tested pension, mandatory superannuation contributions and voluntary superannuation contributions