Even the World’s Most-Envied Retirement Plan Is Falling Short

Between BlackRock’s Larry Fink and UK Chancellor Jeremy Hunt, it’s official: Australia’s A$3.7 trillion ($2.4 trillion) retirement system is the envy of the wealthy world.

In his budget speech to Parliament in March, Hunt cited Australia’s private pensions, known as super funds, as delivering “better returns for pension savers with more effective investment strategies.” Three weeks later, in his annual letter to investors, BlackRock’s Chief Executive Officer directed American policymakers to “study and build on” Australia’s model, suggesting it could be an antidote to the deeply stressed US Social Security system.