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New super changes ‘a major win’ for Australians

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Colonial First State says the new superannuation changes, coming into effect on 1 July, will boost retirement savings for millions of Australians.

The super provider has cited the planned SG increases and expanded concessional contributions as the key to the boost in new analysis, which will best assist Millennials who can make an extra $650,000 at retirement by maximising the increase in concessional contributions.

“The boost for retirement balances is greatest for younger workers, thanks to the power of compounded investment returns,” Colonial general manager, Kelly Power, said.

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“This is particularly true for those who withdrew their super early last year to deal with the pandemic and cover basic expenses, now is the time to start making up some lost ground by using these contributions to replenish their super and rebuild their nest eggs.”

From Thursday, the super guarantee will increase from 9.5 to 12 per cent with 0.5 percentage point increments each year, from 2021 through to 2025.

“These additional savings in your super will determine the lifestyle you enjoy in your retirement years,” Ms Power said.

“It could mean treating yourself with an extra holiday each year or being able to keep your family home where you have an emotional connection instead of downsizing, or even helping to pay for your grandchildren’s school fees.”

New super changes ‘a major win’ for Australians

Colonial First State says the new superannuation changes, coming into effect on 1 July, will boost retirement savings for millions of Australians.

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Neil Griffiths

Neil Griffiths

Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily. 

Neil is also the host of the ifa show podcast.

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