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.
Australia’s second-largest super fund has confirmed it is expanding its presence in the UK following significant investment in the region.
A member of the super fund has approached ASIC to investigate potentially misleading or deceptive representations by UniSuper regarding the holdings of its sustainable portfolios.
The median growth fund delivered 1.9 per cent in March, adding to the “stunning” rally that has seen super funds gain 11 per cent since November.
Vanguard has affirmed its support for the current super performance test, emphasising the importance of keeping the process straightforward.
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