Every single super dollar counts to avoid Age Pension
With many young Australians facing a sustained period of unemployment due to the economic impact of COVID-19, it is now even more important the superannuation guarantee (SG) is lifted to 12%, a super body believes.
The Association of Superannuation Funds of Australia (ASFA) said the cost at retirement for a typical 25-year-old woman who accessed $20,000 in the early release of super scheme could be as much as $85,000 if she was unable to secure employment and contribute to super for two years.
ASFA deputy chief executive, Glen McCrea, said: “If today’s young people are to avoid ending up on the Age Pension, every single dollar contributed to superannuation counts”.
ASFA noted that around half a million Australians has used the early access to super scheme with the majority being under 35 years old.
“Lifting super to 12% of wages will mean more people in retirement can afford decent aged care. It’s not fair that young people should suffer the devasting impact of COVID-19 now and then also be forced into poverty in retirement by relying solely on the Age Pension – we are better than that,” McCrea said.
Recommended for you
The second tranche of DBFO reforms has received strong support from superannuation funds and insurers, with a new class of advisers aimed to support Australians with their retirement planning.
The financial services technology firm has officially launched its digital advice and education solution for superannuation funds and other industry players.
The ETF provider has flagged a number of developments as it formally enters the superannuation space through a major acquisition.
While all MySuper products successfully passed the latest performance test, trustee-directed products encountered difficulties.
