Super costs on the rise
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.
Recommended for you
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.
Iress has appointed Insignia Financial’s former general manager of master trust and insurance products as its newest CEO of superannuation, who will take over from Paul Giles.
