POWERED BY MOMENTUM MEDIA
Call for rollovers to improve gender super gap
A key industry body has advocated for a spousal rollover measure for super fund members to allow couples to even out their balances between them in an attempt to minimise the gender retirement gap.
In its Budget submission, the SMSF Association said that the measure would help mitigate issues caused by the introduction of the transfer balance cap, which it said had resulted in most couples having balances heavily weighted to one member as they hadn’t had enough time to adjust.
SMSF Association chief executive, John Maroney, said that while there were strategies to allow re-contributions, a rollover measure would be more effective. He pointed to spousal contribution tax offsets or contribution splitting, which he said were limited in their effectiveness due to contribution threshold, cap and withdrawal restrictions, and a lack of flexibility.
The Association also used the submission to call on the Government to lift the contribution gap for individuals over 50 years old to $35,000.
“We believe Government policy needs to incentivise and encourage Australians to take ownership of their retirement and contribute to their superannuation, particularly when they have greater financial capacity to do so,” Maroney said.
The submission said that the current cap of $25,000 negatively affected retirees’ ability to save an adequate amount of super to be self-sufficient in retirement.
Recommended for you
The research house has offered a silver lining after super fund returns saw the end of a five-month streak last month.
A survey of almost 6,000 fund members has identified weakening retirement confidence, particularly among those under 55 years of age, signalling an opportunity for super funds to better engage with members on their retirement journey.
The funds have confirmed the signing of a successor fund transfer deed, moving closer to creating a new $29 billion entity.
A number of measures, including super on Paid Parental Leave, funding to recover unpaid super, and frameworks to encourage investment in the energy transition, have been welcomed by the superannuation industry.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI First Close USD
66.99 3 y p.a(%)
2
Hills International
59.27 3 y p.a(%)
3
Acadian Global Equity Long Short Class A
32.82 3 y p.a(%)
4
CFS FC Acadian Global Equity Long Short
32.44 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
32.01 3 y p.a(%)
Add new comment