Superannuation

The Australian Institute of Superannuation Trustees is looking into the not so distant future where the industry will be offering their members with automated advice online or over the phone. This was posed as a possibility to counter red tape and fraudulent advice. The AIST is looking into regulatory constraints such as product disclosure and how to align advice according to the clients’ personal circumstances. It is expected that consumers will feel skeptical about getting automated advice, but this will ultimately result in quicker results. Several important issues have to be addressed before this becomes a reality, but for now [...]

The Association of Superannuation Funds of Australia has recently released a report revealing that 35% of women have no money for retirement. A staggering 60% of women aged 65 to 69 are among the worst affected, as they had no superannuation. ASFA chief executive officer Pauline Vamos has called this an alarming gap in superannuation for women. Based on the report, across all age brackets, men’s average superannuation stands at $112,000 while women only average $68,600. A huge factor being pointed out for the disparity is the length of time women take career breaks to take care of their families, [...]

Retirement Commissioner Diane Maxwell is recommending to raise the retirement age for Generation Y (people born on the 80s to the 2000s). This is part of a proposal to increase the retirement age by a year every 10 years starting in 2027 to address the increasing number of baby boomers (post World War II 1946 and 1964) nearing retirement. The gap between male and female retirement benefits will also be reduced, as women contribute 20% less than men. The government is considering this proposal, as well as putting up a “flexi-super” scheme, where early retirees can avail of a lower [...]