Key US official endorses Australia’s super system’s dependability and sustainability

The US Treasury Secretary has given a glowing endorsement of Australia’s ‘fantastic’ super system at a Washington DC Summit – attended by super fund leaders who are in America to unlock the best deals for super fund members.

During his address to the US Superannuation Investment Summit, newly minted US Treasury Secretary Scott Bessent said he was struck by how the super system delivered certain growth of Australians retirement savings in a “sustainable” and “regular” way.

The summit, convened by Australia’s Ambassador to the United States, the Hon Dr Kevin Rudd AC, and Australia’s Consul-General to New York, Heather Ridout AO, aim is to promote the profile of Australia’s super system and explore new investment opportunities in the US.

During a question-and-answer session with Ambassador Rudd, Mr Bessent said the super model and its scale was ‘fantastic, especially considering Australia had a population smaller than Florida or California.

Mr Bessent, who was a key economics adviser to President’s Trump’s 2024 campaign, said unlike large sovereign wealth funds Australia’s retirement savings growth was not dependent on particular commodity prices.

“That’s what I was struck by the confidence you have in the growth it’s not what one might expect for Australia … many other sovereign wealth funds .. the volumes are dependent on a particular commodity price – whereas your regularity, sustainability and trajectory are really preferable.”  

The landmark Summit positions Australia’s superannuation system as one of the world’s fastest growing and reliable pools of long-term capital, creating new opportunities for investments that will drive strong returns for working Australians’ retirement savings.

Super Members Council Executive general manager of strategy and insights Matthew Linden who was attending the summit said super fund leaders are in the US to “go into bat for member and to unlock the best investment deals for them”.

“This summit aims to show that Australian super funds offer a trusted and reliable pool of investment capital for the US, as well as helping to strengthen ties,” Mr Linden said.

“What has struck US officials and investors is how the strength of Australia’s super system policy settings – automatic super payments, near universal coverage and preservation of savings until retirement – have helped Australians grow world leading retirement nest eggs.”

According to a new report commissioned by IFM Investors, based on analysis from the Super Members Council and Mandala, Australian pension fund investment in the US is expected to more than double over the next decade – from US$400 billion to over US$1 trillion.

The report finds there are opportunities for more collaboration between Australian pension funds and the US. With stronger partnerships, Australian pension fund investments in US private markets could reach US$240 billion or more by 2035.

In a separate meeting, a delegation of funds met with officials at the International Monetary Fund to discuss economic outlook and financial stability. The super system’s world leading transparency, including of private asset valuations, its stable cashflow and liquidity management capability was also discussed.