POWERED BY MOMENTUM MEDIA
Every single super dollar counts to avoid Age Pension
With many young Australians facing a sustained period of unemployment due to the economic impact of COVID-19, it is now even more important the superannuation guarantee (SG) is lifted to 12%, a super body believes.
The Association of Superannuation Funds of Australia (ASFA) said the cost at retirement for a typical 25-year-old woman who accessed $20,000 in the early release of super scheme could be as much as $85,000 if she was unable to secure employment and contribute to super for two years.
ASFA deputy chief executive, Glen McCrea, said: “If today’s young people are to avoid ending up on the Age Pension, every single dollar contributed to superannuation counts”.
ASFA noted that around half a million Australians has used the early access to super scheme with the majority being under 35 years old.
“Lifting super to 12% of wages will mean more people in retirement can afford decent aged care. It’s not fair that young people should suffer the devasting impact of COVID-19 now and then also be forced into poverty in retirement by relying solely on the Age Pension – we are better than that,” McCrea said.
Recommended for you
The super fund announced that Gregory has been appointed to its executive leadership team, taking on the fresh role of chief advice officer.
The deputy governor has warned that, as super funds’ overseas assets grow and liquidity risks rise, they will need to expand their FX hedge books to manage currency exposure effectively.
Super funds have built on early financial year momentum, as growth funds deliver strong results driven by equities and resilient bonds.
The super fund has announced that Mark Rider will step down from his position of chief investment officer (CIO) after deciding to “semi-retire” from full-time work.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
76.97 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
76.46 3 y p.a(%)
3
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
51.13 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
45.15 3 y p.a(%)
5
Select Baker steel Gold Institutional
43.78 3 y p.a(%)
