Lift caps for over 50s says SMSF Association

The SMSF Association has joined with actuarial consultancy, Rice Warner to produce what it says is compelling evidence that the Federal Government should increase the concessional contribution cap for people aged 50 and over and extend the carry forward of concessional contributions.

Releasing new research today, SMSF Association managing director, Andrea Slattery said it conclusively showed that people only began making significant voluntary contributions to superannuation from their mid-50s onwards.

"The research confirms what the association has long been telling policy-makers: that there is a sharp difference between compulsory and voluntary contributions to superannuation — the former increase gradually over time while the latter jump dramatically in the years leading to retirement," she said.

The Rice Warner research used a sample of 14,351 SMSF members provided to the association by SMSF software provider, BGL, and Slattery said it graphically showed why people aged 50 and over needed to have a more generous contribution cap than the $25,000 that would apply from 1 July, 2017.

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"The association has argued for the Government to retain the current $35,000 cap for older workers and notes that even a compromise of a $30,000 cap for those over 50 years will still benefit fund members trying to save their superannuation savings to achieve a dignified retirement," she said.