Australia’s approach to retirement incomes policy has three pillars: the means-tested age pension; compulsory superannuation; and voluntary saving, including saving via superannuation over and above that mandated by the superannuation guarantee. This paper examines the economic case for compulsory superannuation contributions and questions whether compulsory super is the most effective way of promoting household and national saving and reducing future demands on the federal budget from an ageing population when compared to alternative policy options. Most of the economic arguments for compulsory superannuation are second-best arguments made on the assumption that first-best outcomes are unattainable.