Stalling SG at 10% would hit youngest hardest

superannuation guarantee SG

4 February 2021
| By Mike |
image
image
expand image

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

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

3 days ago

Interesting. Would be good to know the details of the StrategyOne deal....

1 week ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 5 days ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

3 weeks ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

6 days 4 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

5 days 7 hours ago