The Morrison Government seems intent on undermining financial outcomes for Australians in retirement given its latest superannuation proposal, the Australian Institute of Superannuation Trustees (AIST) believes.
Media outlets reported today that the Government was considering giving workers a choice of either putting more money into their super or having more take-home pay. This, the AIST said, would see the Government renege on the legislated timetable to increase the super guarantee (SG) from 9.5% to 12.5% by 2025.
AIST chief executive, Eva Scheerlinck, said: “Consumer research has repeatedly shown that Australians strongly support our compulsory super system rather than one which is opt-in. There is a broad understanding that unless we are compelled to save a portion of our wages, very few of us will have enough money for a financially secure retirement.
“Over the course of working life, an extra 2.5% of super savings could boost the average couple’s retirement nest egg by $200,000.
“There are lots of ways to deal with low wage growth but forcing people to use their retirement savings to fund their own pay rise shouldn’t be one of them.”
She noted that the COVID-19 early release of super scheme had already depleted many low income earner’s super savings and the SG increase would be the difference between a financially secure retirement or one just scraping by.
Michael Lovett, who left the investment firm just three months after launching its Vanguard Super offering, has taken up a chief executive role at an Australian asset manager.
The Central Bank of Ireland has granted the approval of Equity Trustees’ exit from its Irish operations, with the transaction expected to be complete on 30 April.
Super returns continued to climb in March, raising hopes of delivering double-digit returns by June depending on the performance of this next quarter.
The dedicated super fund for emergency services and Victorian government employees is under fire for unpaid entitlements to transport employees, which could exceed $40 million.
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