Super costs on the rise

global-financial-crisis/APRA/research-and-ratings/superannuation-guarantee/superannuation-funds/australian-prudential-regulation-authority/government/

30 October 2012
| By Staff |
image
image
expand image

New analysis released by Deloitte has pointed to the degree to which the Government's latest changes to the superannuation settings may serve to amplify people's reluctance to contribute beyond the superannuation guarantee.

The analysis of the latest data released by the Australian Prudential Regulation Authority pointed to the degree to which the global financial crisis had impacted super savings and suggested that the Government's changes to concessional contributions limits may have served to amplify that effect.

"In 2008/2009 the global financial crisis hit and contributions over the last three years have been 15 per cent or more below the 2006/2007 peak," Deloitte partner Wayne Walker said.

"Since these numbers were reported we have had further restrictions placed on the amounts individuals can put into super. Currently the concessional limit is $25,000," he said.

Walker said a key feature of the last three to four years had been that contributions made to superannuation funds had plateaued.

However, the Deloitte analysis pointed out that at the same time during which contributions had plateaued, operating expenses and group insurance premiums had increased.

"Operating expenses increased by almost 80 per cent to a total of almost $4.2 billion in 2010/2011, and insurance premiums increased by almost 180 per cent to just over $3.6 billion," Walker said.

"Annual operating costs across the industry have increased from an average of $95 per member in 2003/2004 to up to $144 per member in 2010/2011," he said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

1 month 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months ago

Entireti has unveiled the new name for the AMP financial advice businesses that it acquired last year....

4 weeks ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

2 weeks 6 days ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

1 week 4 days ago

TOP PERFORMING FUNDS