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Review strategies, says Mercer
People should be encouraged to review their superannuation investment strategies in light of the changed concessional contributions that come into effect from July 1, according to Mercer.
Mercer financial advice leader Scott Walters said such reviews were important in the current low market when superannuation units were likely to be undervalued and the advantages of dollar cost averaging could be profound.
He said the significant reductions in the level of superannuation contributions subject to concessional tax treatment announced in the May Budget meant it was less attractive to leave it to the end of a career to top up superannuation and people of all ages should, therefore, be reviewing their strategies.
“Super units are often undervalued when markets are low, and therefore essentially on sale, which means you can get more units for your money,” Walters said. “Contributing more now will put people in a much stronger position when the market recovers.”
AUTHOR
Mike Taylor
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