POWERED BY MOMENTUM MEDIA
Stalling SG at 10% would hit youngest hardest
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
Recommended for you
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.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI First Close USD
73.88 3 y p.a(%)
2
Hills International
63.66 3 y p.a(%)
3
Acadian Global Equity Long Short Class A
36.33 3 y p.a(%)
4
CFS FC Acadian Global Equity Long Short
35.96 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
32.23 3 y p.a(%)
Add new comment