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?