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Lowered concessional caps counterproductive: FSC
The super system must deliver for middle Australia and help reduce reliance on the Age Pension, the FSC believes.
The Budget's proposal to lower the concessional contribution caps is counterproductive to the objective of the superannuation system, the Financial Services Council (FSC) believes.
Addressing Super Review's Future of Super conference this morning, FSC chief executive, Sally Loane said the government's proposed changes were one of the most significant since the inception of super.
"It is the end of the super era as we know it. I duly note that the 11 new measures were very large. They were a surprise and would affect a small but significant number of Australians," she said.
"The real test is if they will deliver a real increase to support retirement and lower the number of people on the Age Pension."
"Lowering the concessional caps is counterproductive to the objective of the system and will crimp the ability of older people to put savings in super even though they would be in a better position to do so in their 50s than their 30s."
Loane said this, along with later life issues such as divorce and a mortgage, would add to the inability for people to put as much income as possible into their super.
"It's middle Australia that super must deliver for and the system must have a greater capacity to reduce the reliance on Age Pension," Loane said.
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