With many young Australians facing a sustained period of unemployment due to the economic impact of COVID-19, it is now even more important the superannuation guarantee (SG) is lifted to 12%, a super body believes.
The Association of Superannuation Funds of Australia (ASFA) said the cost at retirement for a typical 25-year-old woman who accessed $20,000 in the early release of super scheme could be as much as $85,000 if she was unable to secure employment and contribute to super for two years.
ASFA deputy chief executive, Glen McCrea, said: “If today’s young people are to avoid ending up on the Age Pension, every single dollar contributed to superannuation counts”.
ASFA noted that around half a million Australians has used the early access to super scheme with the majority being under 35 years old.
“Lifting super to 12% of wages will mean more people in retirement can afford decent aged care. It’s not fair that young people should suffer the devasting impact of COVID-19 now and then also be forced into poverty in retirement by relying solely on the Age Pension – we are better than that,” McCrea said.
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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