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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.
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ASFA has urged greater transparency and fairness in the way superannuation levies are set and spent.
Labor’s re-election has reignited calls to strengthen Australia’s $4.2 trillion super system, with industry bodies urging swift reform amid economic and demographic shifts.
A major super fund has defended its use of private markets in a submission to ASIC, asserting that appropriate governance and information-sharing practices are present in both public and private markets.
A member body representing some prominent wealth managers is concerned super funds’ dominance is sidelining small companies in capital markets.
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