Possible changes to superannuation discussed in the Tax Discussion Paper and Intergenerational Report should make Australians think twice before they top up their super, argues Centuria Life.
Centuria general manager Neil Rogan said investors need to consider their options when it comes to their retirement savings.
“If there are changes to the way super is taxed and when you can access it, those who only invest within their super fund may need to look at alternative options and consider the costs and benefits of holding investments outside of superannuation," Mr Rogan said.
Investors should "take a holistic investment approach and identify and assess options that may be appropriate for you for investing outside of super to potentially boost retirement savings", he said.
“Whilst investments outside of superannuation will each have differing taxation rates, investments like shares, property and life insurance investment bonds held outside of superannuation should be considered in a holistic investment approach,” Mr Rogan said.
According to the Tax Discussion Paper, within 10 years, half of all taxpayers will be in the top two tax brackets.
Investors therefore need to be aware of changes and look to other investment options, he said.
Another key area of reform is the age at which super can be accessed, he said.
"If the access age increases [to 70 years old] it may disadvantage those who have the means to retire at 65 by taxing early withdrawals," Mr Rogan said.
"It may also impact how much you can withdraw at 60 and how much you can use as an income stream.
“We are finding that some investors are giving consideration to diversifying into other potential investments they are able to access more easily when they want to retire,” he said.
A global life insurer has launched a research program with the University of Oxford to look at new approaches to income protection for more ...
A 20-year projection of different income levels confirms that lower earning retirees will be hit hardest by the ALPs proposed removal of fra...
The recent suggestions from the Grattan Institute have been labelled as offensive to working Australians by the nation’s largest super fun...