Remove pause and lift SG says new ASFA CEO
Most Australians believe the superannuation guarantee should be raised to 12 per cent, according to new research released at the Association of Superannuation Funds of Australia (ASFA).
The research, released by the new ASFA chief executive, Dr Martin Fahey at the national conference on the Gold Coast reinforced that the current paused superannuation guarantee rate of 9.5 per cent was not enough to deliver Australians a comfortable retirement.
Fahey said the SG needed to rise initially to 12 per cent and then to the 15 per cent originally envisaged by former Prime Minister and Treasurer, Paul Keating.
"We all know that a comfortable retirement cannot be achieved via the current paused rate," he said.
"It is not enough."
Fahey said the need to increase the SG had to be viewed in the context of the strong consumer support for superannuation which had been identified by the ASFA research with 63 per cent of respondents supporting increasing the SG to 12 per cent and the knowledge that 54 per cent regarded superannuation as a great way to save for retirement.
He also noted the high level of satisfaction with superannuation funds, with only five per cent of respondents indicating they were considering changing their arrangements or changing funds.
However he cautioned that funds would increasingly need to ensure they were fit for purpose in circumstances where 20 per cent of respondents aged under 29 indicate they were looking to change their super fund in the next 12 months.
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An Australian superannuation delegation will visit the UK this month to explore investment opportunities and support local economic growth, job creation, and long-term investment.
An ASIC review has identified superannuation trustees are demonstrating a “lack of urgency” around improving their retirement communication and still taking a one-size-fits-all approach.
Superannuation funds have welcomed the boost that Treasury’s improvement on the Low-Income Superannuation Tax Offset will have for women and younger members.
The proposed changes to the Low-Income Superannuation Tax Offset (LISTO) has been applauded by the superannuation sector.
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