The Australian SGL System: A Community Balance Sheet Analysis

Abstract

The Australian SGL system impacts many aspects of Australians’ well-being through reduced wages to fund the SGL contributions, an enhanced retirement standard of living, government costs of the Age Pension system, employment in the financial services industry and providing a pool of capital for the Australian economy. The paper argues that in balance, taking into account both qualitative and quantitative analysis, the SGL system has a negative impact on Australians’ well-being, and suggests alternative structures that would at least neutralize the current negative impact and possibly enhance it.

Keywords: SGL System, Retirement Standard of Living, Pre-Retirement Standard of Living, Income and Wealth Inequality

JEL Classification: D1, D6, G2, G5, H2