Super changes, super confusing

According to new research commissioned by the Association of Superannuation Funds of Australia (ASFA), many Australians are confused by the Federal Government’s proposed superannuation changes.

The poll of over 1000 Australians revealed that one in three fund members had no idea of the Federal Government’s taxation changes proposed in the May 2016 Budget and 24 per cent found superannuation too complicated to understand.

“We also found that 70 per cent of consumers do not read product disclosure statements or are not aware of them. This means many are making product choices based on emotion or they are not making any decisions at all,” said ASFA chief executive Martin Fahy.

The most alarming figure to come out of the poll is that 50 per cent of respondents had no idea of how much super they would need in retirement, suggesting that respondents had given little to no thought as to how they would retire in the future.

Mr Fahy believes that the superannuation guarantee rate of 9.5 per cent should be quickly boosted to 12 per cent, and then to the 15 per cent originally planned by Paul Keating.

Do you find the proposed changes to superannuation confusing? Should the superannuation guarantee be increased to 12 per cent and then 15 per cent? What would help you to better understand your super entitlements?


Related articles:
Super changes set for vote
Super changes cater to wealthy
Super needs to be fixed right now

Written by Drew

Starting out as a week of work experience in 2005 while studying his Bachelor of Business at Swinburne University, Drew has never left his post and has been with the company ever since, working on the websites digital needs. Drew has a passion for all things technology which is only rivalled for his love of all things sport (watching, not playing).


Superannuation: which changes will be introduced

The much-discussed super changes will be introduced in to Parliament today.

Super changes reinforce Government’s focus on rich

Scrapping the $500,000 lifetime cap will only benefit rich Australians.

Major bank chief says superannuation needs to be fixed now

Westpac's head of wealth management says super needs to be fixed now.