POWERED BY MOMENTUM MEDIA
Super reform could lead to branching out
Changes to the way superannuation is taxed and when members can access it may lead many to seek other options and hold investments outside of super, Centuria Life opined.
Commenting on the recently released Tax Discussion Paper, general manager, Neil Rogan, said he is seeing some investors thinking about diversifying into other investments.
He said superannuation reform could create confusion for people around their retirement strategy.
Rogan warned upping the super access age to 70 years old in line with the Age Pension could push people to diversifying into other investments that they can access more easily when they want to retire.
"If the access age increases it may disadvantage those who have the means to retire at 65 by taxing early withdrawals," he said.
"It may also impact how much you can withdraw at 60 and how much you can use as an income stream."
Rogan urged investors to think about investments like shares, property and life insurance investment bonds held outside of super.
Recommended for you
Large superannuation accounts may need to find funds outside their accounts or take the extreme step of selling non-liquid assets under the proposed $3 million super tax legislation, according to new analysis from ANU.
Economists have been left scrambling to recalibrate after the Reserve Bank wrong-footed markets on Tuesday, holding the cash rate steady despite widespread expectations of a cut.
A new Roy Morgan report has found retail super funds had the largest increase in customer satisfaction in the last year, but its record-high rating still lags other super categories.
In a sharp rebuke to market expectations, the Reserve Bank held the cash rate steady at 3.85 per cent on Tuesday, defying near-unanimous forecasts of a cut and signalling a more cautious approach to further easing.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom 465 Calder Road Calder
99.46 3 y p.a(%)
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
78.55 3 y p.a(%)
4
BetaShares Crypto Innovators ETF
50.39 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
47.50 3 y p.a(%)
