Australian Institute of Superannuation Trustees chief executive Fiona Reynolds at the time said the anxiety presented an opportunity for the industry to engage with its members.
Fast forward to March 2008. The United States has bailed out big name institutions, banks have collapsed around the world and investment returns continue to nosedive.
Yet a study launched at this year’s CMSF suggests funds and members alike may have started a process of re-engagement.
The study shows 80 per cent of people remain confident in Australia’s compulsory superannuation system despite the fact they believe returns will worsen.
And while voluntary contributions may fall, 57 per cent of those people making such contributions say they will continue.
At a time when some commentators have questioned the merits of our retirement income system, it was pleasing to see most Australians remained confident in the compulsory super system, Reynolds said.
Of course, the industry still faces a mammoth task in securing and sustaining this confidence.
With predictions of a global depression from Bridgewater Associates’ Rob Zink, the year ahead will most certainly test many people’s belief in the superannuation system.
Traditional thinking was also turned on its head as big questions emerged from the conference. Are we in a global crisis or in the middle of an ethical crisis? What now for climate change? How will funds address falling cash flows on the back of member investment switching? Are we facing a liquidity crisis?
Speaking at last year’s conference, social theorist Hugh Mackay predicted people would awaken from a state of daydreaming. Mackay said he believed the “magic moment” would arrive as people were prepared to ask the big questions.
Big questions can only demand big answers. Perhaps a task for CMSF09, as they say one year can make a big difference.
