Joint super accounts mooted


The Federal Government should consider allowing married couples to have joint superannuation accounts, according to actuarial consultancy, Rice Warner.
The consultancy has used its pre-Budget submission to argue the case for joint super accounts, including that it would deliver higher levels of engagement while, at the same time, reducing the number of superannuation accounts.
"We could reduce the number of superannuation accounts by several million," the submission argued. "If half of all couples exercised the option, there would be a reduction of 3.5 million accounts or 12 per cent of all accounts."
As well, it said that retirement benefit projects provided by superannuation funds would likely be more accurate and members would get a better picture of how they were tracking to retirement.
Rice Warner also argued that should a move would also help to reduce the female retirement savings shortfall as couples would plan their retirement finances together.
"The simplified structure for couples, combined with Member Direct investments now offered by several funds, would provide many of the benefits of a self-managed superannuation fund (SMSF)," the submission said. "This might appeal to those members who want the flexibility but not the responsibility of running an SMSF."
"An SMSF would have a simpler process too. Where both partners of a couple are the only members, the accounts would be much simplified as they wouldn't need separate annual statements."
Recommended for you
AMP is to launch a digital advice service to provide retirement advice to members of its AMP Super Fund, in partnership with Bravura Solutions.
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
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.