The Turnbull Government’s rejection of key Senate recommendations on reforming super last week is a “setback for the retirement outcomes of Australian women”, the Australian Institute of Superannuation Trustees (AIST) yesterday warned.
The Government rejected all of the key recommendations of the A husband is not a retirement plan: Achieving economic security for women in retirement report, which was released by the Senate Economics Referenced Committee. The reforms rejected included:
The Government pointed to its 2016 Budget reform to extend the spouse offset for superannuation contributions and allow people with super balances under $500,000 to make significant catch-up contributions.
AIST chief executive, Eva Scheerlinck, said that rejecting the Senate report’s reforms and instead emphasising those in the 2016 Budget “was inadequate and out of step with reality”.
“Extending the spouse offset and allowing higher catch-up contributions will do nothing to help ordinary working women who may not have the spare cash to put more into super, nor will it do anything to help divorced and single women who experience some of the poorest outcomes in retirement,” Scheerlinck said.
She also said it was “disappointing” that the Government had taken over two years to respond to the report.
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.
While some superannuation funds have gone down the route of internalisation, others say they favour ‘smart partnering’ with external managers for diversification appeal.
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