Young Australian superannuation fund members stand to be 15% worse off at the time of their retirement at age 67 if the Government moves, as being speculated, to cap the superannuation guarantee (SG) at 10%.
Analysis undertaken by investment portfolio firm, mProjections has carried out analysis on what happens if the Government, in the May Budget, moves to delay or cancel the scheduled increases which would take the SG to 12% by 2025.
And the bottom line is that it is younger workers – those aged 25 or younger – who will be most affected with those aged 55 and over experiencing much less impact because they will have had less time in receipt of the scheduled increase.
The mPortfolio analysis assumes a retirement age of 67, that people own their own home at retirement, that their fund is invested 65% in growth assets and 35% in defensive assets, and takes into account the age pension when appropriate.
It finds that those aged 25 stand to lose around 15%, while those aged 40 stand to lose 9.1% and those aged 55 stand lose 2.6%.
Source: mProjections
BlackRock boss Larry Fink praised Australia’s superannuation system in his annual chairman’s letter.
The prudential regulator has announced it will publish new expenditure data of superannuation funds, providing details on expenses like advice, director remuneration, and payments to unions.
Affirming the UK’s growing attractiveness as an investment destination, a number of Australia’s largest investors recently joined the UK Foreign Secretary for an exclusive briefing in Canberra to discuss further opportunities for trade and growth.
The specialist superannuation law advisory practice is set to wind up, with managing partner Jonathan Steffanoni planning to bring a new offering to market.
Add new comment