The RIR found that Australia’s retirement system was “sound, stable, and effective” and that there were limited arguments for proceeding with the legislated increase to 12 per cent.
“Maintaining the superannuation guarantee rate at 9.5 per cent would allow for higher living standards in working life,” Treasurer Josh Frydenberg said, quoting the report.
“Working life income for most people would be around 2 per cent higher in the long run … the most effective way for people to secure themselves in retirement is not necessarily an increase in the superannuation guarantee, but by more efficiently using the savings that they do have.”
However, Mr Frydenberg stopped short of saying the Morrison government would move to cut the legislated increase, pushing the decision back to the May budget while noting that Australia was “living in a very different economic environment than we were last year”.
More to come.
For the Treasurer to say that “a ….. 2 per cent higher (wage/ salary) is…the most effective way for people to secure themselves in retirement is …. more efficiently using the savings that they do have” is easy to say but how do we measure that or give people confidence in their retirement future? On the other hand, having a nest egg of superannuation and an estimate of what it will be worth in retirement is a valuable contributor to confidence in retirement. The numbers we are doing (the mProjections algorithm) show that a retirement with the increased SGC is a necessity for superannuation to offer a meaningful level of confidence in their future.
Frydenburg and Morrison are aiming to wreck super and give business a free ride – taking us back 30 years or more to when employees had little or no retirement security, but they’ve added that today no employees have job security either. I have no idea why this industry backs the conservatives every time.. They are actually radical, fundamentalists, dressed as conservatives, but borrowing socialist policies when it suits them)…
The problem here is that if we seek to lobby for SG to continue to 12% – where it belongs – we’ll be seen as pushing our own barrow. That’s thanks to all the cowboys who kept clinging to commissions until they were outlawed Thanks a lot. BTW – SG doesn’t decrease wages/income, becuase it’s paid in addition, yes, as part of the package, but being madated it can’t be dodged. Wages growth has stalled and now super has stalled. Australians don’t get it: if you don’t mandate super to be sustainable we’ll have Age Pensions for most, forever, so taxpayers will continue to support the AP forever, anyway. Until all politicians have ONLY the same super entitlements as everyone else trhey’ll NEVER want SG to be sustainable, because they don’t need it or get it.
Understand this: The Coaltion doesn’t care for you (Financial Planners) and reckons you’re all crooks and can’t be trusted. That’s clear from their actions, even if muddied by some of their words. They ONLY care for the top end of town and seek to cut their costs at the expense wage and salary earners. When was the last CEO or CFO or even board member of a large company gaoled? Bond? Skase? Only those who played out of their league for while.
Industry Super, the only Super receiving HIDDEN COMMISSIONS PAID BY EVERY MEMBER TO FUND Intra Fund Sales / Advice that very few members receive but every member pays for.
Who’s receiving HIDDEN COMMISSIONS ?
INDUSTRY SUPER !!!
“….becuase it’s paid in addition, yes, as part of the package….” So which one is it Phillip?
And I take issue with your swipe at those holding onto commissions remark. Many issues around commissions but SGC is not one of them Phillip.
The main sector of the industry wanting SGC to increase is Industry Super – they just want FUM, more FUM and reliable FUM, and if they can get it at 12.5% of wages year in year out forever then they will spend money to get it. More FUM mean more fees from the FUM and more Fees means more fun, bigger directors fees, more directors, more staff paid from hidden commissions to sell more product and more power from more FUM.
Getting the picture yet Phillip?