Financial services companies are reporting a surge of money into their superannuation products, as people take advantage of the tax free $1 million lump sum contribution.
"In the weeks from March to the end of April, we had more than $700 million inflows in $1 million deposits, which indicates to us that investors are taking advantage of the $1 million contribution opportunity," Macquarie Adviser Services head Neil Roderick said.
"This June quarter will be an absolute monster for us in terms of inflows. This is a result of the Government's superannuation changes," Colonial First State general manager, product and investment services, Alan Kenny said.
We have had about a 20 per cent increase in our inflows as a result of these budget changes, Kenny said.
"The money will continue to flow into superannuation after June deadline as there is still some real opportunity in the market," he said.
Not everyone has $1 million dollars to invest in superannuation, however, it has now become a tax effective investment. Kenny said he believed people will continue to invest in their superannuation.
