SG increase "critical" says ASFA
The super guarantee (SG) should be moved to 12 per cent s soon as possible, rather than 2021, according to the Association of Superannuation Funds of Australia (ASFA).
AFSA chief executive officer, Martin Fahy said this provides an opportunity to accelerate the move sooner, if the upcoming budget demonstrates an early pathway to surplus.
“Each year we delay is costing Australians superannuation savings that could help improve their retirement outcomes,” said Fahy.
ASFA retirement models showed an average earner aged 30 on a $70,000 salary would have $71,600 less when retiring at 67 if the SG stays at 9.5 per cent.
Bringing forward the timetable for lifting the rate of the SG by two years would boost their retirement savings by $7000.
AUTHOR
Chris Dastoor
Recommended for you
Financial Services Minister Stephen Jones has shared further details on the second tranche of the Delivering Better Financial Outcomes reforms including modernising best interests duty and reforming Statements of Advice.
The Federal Court has found a company director guilty of operating unregistered managed investment schemes and carrying on a financial services business without holding an AFSL.
The Governance Institute has said ASIC’s governance arrangements are no longer “fit for purpose” in a time when financial markets are quickly innovating and cyber crime becomes a threat.
Compliance professionals working in financial services are facing burnout risk as higher workloads, coupled with the ever-changing regulation, place notable strain on staff.
