POWERED BY MOMENTUM MEDIA
Focus on retirement phase needed
The superannuation system has been too focused on the accumulation and the Retirement Income Review needs to address the retirement phase, according to the SMSF Association.
In a submission to the review, the association said a significant portion of self-managed super fund (SMSF) members were now navigating retirement and were responsible for almost half of the income benefit payments in the super system, and almost half of all the voluntary contributions in the super sector.
SMSF Association chief executive, John Maroney, said: “Their widespread use, effectiveness and uniqueness to the retirement income system should not be underestimated when assessing the retirement income system and the positive retirement outcomes that have resulted for SMSF members”.
The association noted that the review needed to set facts on which policies could be built as retirement income debates were repeatedly conducted on the same issues without resolution. It said, for example, the level of the super guarantee debate had stifled informed policy making.
The submission also said the review needed to encourage governments to remove super policy from the annual budget policy cycle to promote stability, competition, and efficiency.
“Dealing with regulatory change and uncertainty is commonly cited as the number one area of concern for SMSF trustees and advisers. The association believes that a successful retirement income system requires superannuation to be simplified,” it said.
“It is essential that the objective not only has a focus on providing retirement income but also ensures that retirees are able to build adequate retirement savings through the superannuation system to manage the financial risks of ageing and retirement.”
Recommended for you
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.
Specific valuation decisions made by the $88 billion fund at the beginning of the pandemic were “not adequate for the deteriorating market conditions”, according to the prudential regulator.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
