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Budget brings back confidence, says ASFA
This year's Federal Budget should reinstate community confidence in the nation's superannuation system, according to Association of Superannuation Funds of Australia chief executive Pauline Vamos.
She said it would allow members to plan their retirement with 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," Vamos said, adding those concerns appeared to have been addressed.
Vamos said it was particularly pleasing to see the changes to contributions caps for over-60s, as well as 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," she said.
The association was pleased to note no new unexpected changes, but said more work needed to be done.
"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," she said.
The challenge was now to ensure the system was sustainable and delivered adequate income to all Australians, Vamos said.
Members' super account balances were just one factor in that conversation, she said.
"Other assets, investments and costs will continue to be part of the conversation," said Vamos.
"It's important to have that conversation now so all Australians can plan for their retirement years in an environment of stability and certainty."
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