If the superannuation guarantee is frozen at 9.5% the replacement rate would be 55%, compared to the assumption of 84% that the Government’s Retirement Income Review made, according to Industry Super Australia.
The superannuation guarantee increase should continue as legislated as super members who applied for the early release of super are missing out on the compounding benefits of investment returns over many years.
Industry superannuation funds are calling on the Government to help low income earners recoup their losses from taking hardship early access superannuation by making a one-off contribution to the super accounts of those earning less than $39,837.
The Association of Superannuation Funds of Australia has welcomed the Australia Prudential Regulation Authority’s super return numbers which show the average return for APRA regulated funds was 6% in the June 2020 quarter.
Retirees who took more than the reduced minimum amount as a pension before the change became law can only treat payments made after 24 March, 2020, as lump sum commutations, according to the SMSF Association.
AMP Limited has sought to clarify its position on the appointment of Boe Pahari as chief executive of AMP Capital by publishing an apology from him for events in 2017 as well as the conclusion of a Queen’s Counsel’s investigation into those complaints which found them the “a modest breach”.
There are a range of self-interest groups “obsessed with dismantling superannuation on ideological grounds” that could shrink the economy, according to the Association of Superannuation Funds of Australia.
The proposal for the early release of superannuation to address housing affordability by the Master Builders does nothing to address the supply side constraints at the heart of housing affordability, the Association of Superannuation Funds of Australia believes.
The Government’s changes to insurance inside superannuation have been responsible for driving premium increases, not the superannuation funds themselves, according to the Australian Financial Complaints Authority.
New analysis has pointed to significant problems arising from a combination of the Government junking its superannuation guarantee rise undertakings and continuing its superannuation early release regime.
The complex limited licence framework for SMSF accountants and advisers, the carve out for intra-fund advice, and the lack of clarity around scaled advice for fully licenced advisers need to be removed to meet unmet advice needs.
Petrol, electricity, gas, and water costs came down for retirees in the June quarter leading to couples aged 65 needing 0.8% less in retirement savings, and singles needing 1.1% less, according to data.
Membership fees are the lifeblood of industry superannuation funds and new analysis has revealed they appear to have taken a mighty hit from the Government’s hardship early release superannuation regime.
Superannuation funds would be able to deliver advice around the questions most asked by members via a record of advice under a proposal being backed by the Association of Superannuation Funds and echoing similar proposals put forward by the Financial Services Council.
Government agencies, including the Australian Federal Police, have been alerting to the Australian Securities and Investments Commission to rorts around early release superannuation and other Government COVID-19 stimulus measures.
New data has revealed the degree to which self-managed superannuation funds are facing a decade of struggle as the COVID-19 pandemic and associated measures undercuts their value and their capacity to recover.
Superannuation funds may not necessarily be held responsible for making good the losses caused by fraud around the Government’s hardship superannuation early release regime, according to the Australian Prudential Regulation Authority.