This report compares Australia’s superannuation scheme and Age Pension program with the pension systems of Sweden and Norway.

Key findings

• The mostly public systems of these Nordic Countries are more effective at ensuring income security for retirees. 
• Compared to both Sweden and Norway, Australia has a significantly higher poverty rate among people in retirement.
• The mostly public retirement saving systems of Sweden and Norway ensure that more retirees have financial security.
• The Australian Government spends less on the public pension; and 
• The Australian Government's significant superannuation tax concessions benefit people who already wealthy.

Recommendations

• This inequality could be reduced if the tax concessions on superannuation given to the already wealthy were limited or removed entirely, and the revenue generated was instead used to fund the Age Pension.
• The Australian Government could borrow from the policies of Norway and Sweden and require the contributions currently made to private superannuation funds to instead go towards a universal public pension program.
• Furthermore, the Australian Government could help reduce poverty among Australia retirees by allowing them to work and earn income without it affecting their Age Pension payments, as retirees in Sweden and Norway can.