Super speculation undermines voluntary contributions
Speculation around the future of superannuation tax concessions had served to reduce voluntary contributions to superannuation, according to Mercer senior partner, Dr David Knox.
Releasing the results of the latest Australian Institute of Superannuation Trustees (AIST)-Mercer Super Tracker data, Knox pointed to both the research findings and anecdotal evidence provided by super fund chief executives as proof that voluntary contributions had declined.
He said he believed this reflected the current turmoil around superannuation policy and a consequent loss of confidence.
With less than two months to go to the Federal Budget, Knox also pointed to the Super Tracker data revealing the degree to which last year's Budget changes had most affected middle income earners who were receiving less government support than either those at the top of the income spectrum and those at the bottom.
"Who gets hurt from the new assets test — middle Australia," Knox said.
However he said that the Government should not seek to inject equity via either the superannuation system or the Age Pension but, rather some via the progressive income tax system.
The data also pointed to the value of Australians choosing to work longer, with Knox suggesting this would deliver a really desirable outcome giving rise to the need to encourage the continued labour participation of older workers.
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