The rise in compulsory superannuation guarantee (SG) contributions to 12 per cent would not have a significant impact on clients' retirement strategies and investment plans, an industry veteran said yesterday.
The SG will increase from 9 per cent to 12 per cent by 2020 after the minerals resource rent tax was passed by the Senate on Monday night.
"The investment strategy that's taken shouldn't be any different because it's not substantially greater than the amount put into superannuation now," Self-Managed Super Fund Professionals' Association of Australia director of education and professional standards Graeme Colley told InvestorDaily.
"It would be unlikely as it is only a very gradual change and it's very small amounts initially until it builds up to the 3 per cent by 2020 [and] even with wage increases it's still not going to have a great impact."
While Australians did not engage with their superannuation, they did take notice when their balance became substantial and also how quickly the amount built up, Colley said.
"Moving from 9 to 12 per cent or a higher percentage, money builds up more quickly and because of that, they start to take a greater interest in their retirement savings," he said.
"That's when some will go to a financial planner, whereas they may not have in the past."
The impact of compounded interest with a higher SG amount of 15 per cent, for example, would trigger a need to change client plans in 10 or 20 years, he said.
"But that would be a very long-term strategy," he said.
