The ability to rollover unused superannuation concession caps over five years will help people trying to catch-up on their super, the Australian Institute of Superannuation Trustees (AIST) believes.
While AIST and other industry bodies raised concerns on the concessional cap being reduced to $25,000 after Tuesday's budget was released, it said the flexibility provided the opportunity to put up to $125,000 into super (including super guarantee contributions) in the last year of a five year period, or $50,000 over a two year period.
AIST chief executive, Tom Garcia, said it was a sensible policy measure that recognised that the super system needed to become more flexible in line with the way people work.
"Not everybody works consistently for 40 years and workers — particularly women who take career breaks to care for family members — shouldn't be penalised," he said.
Garcia noted that while many workers would not have the available cash to take advantage of the flexible caps, older works with the funds to make a significant contribution to catch up on their super when they returned to work would benefit.
"The government has recognised that the system shouldn't be one size fits all," he said.
If female school or university students volunteer for work experience in finance, organisations have a “duty” to offer it to them, according to a senior funds management executive.
New research from Aware Super on the occasion of Equal Pay Day reveals Australia’s 13 per cent gender pay gap will equate to a $93,000 deficit in women’s super balances compared to men at retirement.
With only 25% of women currently using a financial adviser and many lacking financial confidence, they are losing thousands in superannuation.
The significant difference in women’s average superannuation account balances, compared to their male counterparts, continues to concern industry professionals.
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