NEWS – Not Enough to Retire – Call to lift contribution maximums in super

NEWS – Not Enough to Retire – Call to list contribution maximums in super

Not Enough to Retire – Call to list contribution maximums in super

Are you concerned you do not have enough to retire on? (NEWS – 40% of Australians retire 5 years before financially ready). There is a call by many to lift contribution maximums to super, in order to help close the gap where not having enough will mean retirees will need to rely on the government/social security to have enough to live on.

Miranda Brownlee at SMSF Advisor Online reports on suggestions by an advisor group recently to lift contribution maximum caps to take the burden away from the taxpayer –

A lift in the concessional contribution cap is essential to ease the burden on the social welfare system, according to a Sydney-based financial advice boutique. Speaking to SMSF Adviser, Omniwealth’s managing director Matthew Kidd said the current concessional contribution cap must be raised if the super system is to be successful in reducing the burden on the social welfare system in the future.”

“I would ideally like to see people, at least those over the age of 50, being able to put upwards of $100,000 a year into super concessionally and maybe have it tiered so that once you’re over 40 you can go up to 50,000.”

Mr Kidd said calculations of what someone needs to retire on and what they can put into super at the moment shows a significant gap.

“There’s going to be pressure on the social welfare system down the track because people can’t put enough into super,” he said.

“It’s a bit of a ‘rob Peter to pay Paul’ scenario; you’ve prevented or reduced the amount of money going into super to stimulate the economy and keep the economy ticking over but you’ve done damage down the track.”

Mr Kidd said when Gen X investors and the younger baby boomers begin to retire, there’s going to be a gap between what they have in super and what they need to retire on.

“The whole idea of the superannuation system was to take the burden away from the taxpayer,” he said.

READ HERE

Of course the call to lift contribution caps has been out for years –

Accountants call for increased super caps

LIFT CONCESSIONAL CAP, SAYS IPA

SPAA calls for lift in super concession cap

What are your thoughts – comment below!

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Self-Managed Superannuation Service Providers in Australia. SuperBenefit provides a wholistic SMSF assistance, education and administration service continuum - 1. “assistance” is help of whatsoever nature where our overall SMSF experience and knowledge enables us to provide assistance/help without any legal (or “license”) limitations. 2. “education” involves providing knowledge through teaching, coaching and mentoring about all matters SMSF, including (but not limited to) investment issues such as equities and property, 3. “administration” encompasses all admin aspects of legally required SMSF trustee and member record keeping including (but not limited to) audit and ATO matters. In keeping with our key point that SuperBenefit does not provide Financial Advice, where issues arise from 1, 2, and/or 3 above Indicate a need for a legally authorized provider (such as a Financial Adviser) and the client does not have their own service provider, the client can utilize SuperBenefit’s ‘Connect Assist’ … SuperBenefit, in itself, does not provide Financial Advice, but it does provide the wherewithal for great SMSF service. WE do not provide Financial Advice or any other service that requires a legally authorized provider. However, where such advice or service is required we have our ‘Connect Assist’, a SuperBenefit resource we use to connect clients to a Licensed Advisor or other legally authorised service provider. Call us 0407 361 596, no obligation FREE Connection call to see how we can help you!
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