Investing in our future:
Finding strength in numbers
Our population growth also means we need to look at new ways of supporting Australians looking to retire. According to the FSC/PwC CEO report, Shaping the future of our industry, there is a $695 billion shortfall between what Australians are saving and what they need to sustain a reasonable lifestyle after leaving work. It is critical to ensure the funds that manage our superannuation are strong, efficient, and capable of maximising our retirement income and delivering value for money.
When the Australian Government announced its Review into the governance, efficiency, structure and operation of Australia’s superannuation system (the Cooper Review), Australian superannuation funds paid close attention. Melbourne-based Health Super in particular saw that the resulting policies to drive sustainability in the superannuation industry would lead to more mergers.
The opportunity arose for Health Super to merge with First State Super to create a new $30 billion fund. PwC worked with Health Super to provide the financial due diligence; we had conversations with the fund about what the benefits and downfalls of a merger might be and how Health Super could create greater opportunities for its members.