14 May 2013
Budget allows people to plan for their retirement with certainty
The Association of Superannuation Funds of Australia (ASFA) is pleased to see no new unexpected changes to superannuation in this year’s Federal Budget.
ASFA CEO, Ms Pauline Vamos, says this will allow people to plan for their retirement with some certainty.
“Over the past few months we have expressed concern regarding the impact on community confidence in superannuation as a result of the ongoing speculation. These concerns appear to have been addressed.”
Ms Vamos says while the Budget has confirmed the suite of measures announced regarding superannuation last month, there are still further details that need to be addressed.
“We note that some measures have been slightly adjusted as a result of the response to the April announcements, however there is still further work to be done to address any potential issues which may arise on implementation.”
Ms Vamos says ASFA welcomes in particular, the previously announced increase in the contributions cap to $35,000 for over 60s and the change in the tax treatment of annuities.
“These measures will help address issues of longevity and access to income streams – both very important factors to help people achieve a comfortable retirement.”
Ms Vamos says the challenge now for policy makers from all political persuasions is to ensure they take a long-term, holistic view towards retirement income policy, which accommodates the changing demographics of the Australian population.
“The goal should be to ensure that we have a sustainable superannuation system which delivers all Australians adequate income to provide a comfortable living in retirement.”
“Your superannuation account balance is just one factor. Other assets, investments and costs will continue to be part of the conversation. It’s important to have that conversation now so all Australians can plan for their retirement years in an environment of stability and certainty.”
For media enquiries, please contact:
Lisa Chikarovski, Media Manager, 0451 949 300
ASFA is the peak policy, research and advocacy body for Australia’s superannuation industry. It is a not-for-profit, sector-neutral, and non-party political national organisation whose aim is to advance effective retirement outcomes for members of funds through research, advocacy and the development of policy and industry best practice.