A divorce or a relationship break-up could have the potential to jeopardise retirement savings.
Australians are already struggling to save up the necessary $500,000 recommended so a single person can have a comfortable requirement.
A relationship breakdown is even more of a hindrance to accumulating enough superannuation, especially when assets are combined under a super splitting arrangement.
Women in Super chief executive Sandra Buckley said women were abandoning their superannuation because dividing up retirement assets were too tricky without legal advice.
A divorce or a relationship break-up have the potential to jeopardise retirement savings. Women in Super chief executive Sandra Buckley said women were abandoning their superannuation because dividing up retirement assets were too tricky without legal advice. Stock image
A Labor MP has encouraged Coalition MPs to fight their proposed superannuation reforms, which would give the Treasurer new powers to block funds’ investment decisions, as crossbench support for the legislation dwindles.
Superannuation Minister Jane Hume says it is important the “Your Future, Your Super” legislation is passed to ensure superannuation funds best serve their members because it is “certainly not a cottage industry anymore”.
Ms Hume said there is currently $3.1 trillion in superannuation assets under management and around $30 billion a year paid in fees across the country.
“That’s why it’s so important that we pass the Your Future, Your Super legislation as soon as possible to make sure that this is an efficient system that’s serving embers rather than funds,” she said.
“We think that it will defiantly pass because I think people realise that the most important thing that we can do is make sure that your super fund follows you throughout your working life”.
Ms Hume said it was also important to ensure superannuation fund trustees were held to a greater level of accountability and transparency.
Lobby groups warn of higher costs if $450 super threshold axed
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Industry lobby groups are warning the governmentâs decision to expand superannuation payments to workers earning less than $450 a month will lead to higher costs at a time when many of their members are still struggling from the economic downturn.
The government announced in Tuesdayâs budget that it was axing the rule that requires employers to pay superannuation to only those employees earning more than $450 a month before tax.
Australian Retailers Association CEO Paul Zahra thinks the move will improve the financial wellbeing of retail workers. Â
Alex Ellinghausen
Australian Government’s Superannuation Reform Bill Faces Challenges Despite Revision
The Australian government’s proposed changes to the superannuation fund performance test have faced criticism after the opposition said the Bill should not be supported following the inclusion of some controversial proposed reforms.
Treasurer Josh Frydenberg and Superannuation Minister Jane Hume released the consultation draft regulations for the new Your Future, Your Super (YFYS) reform package on April 28 as a response to the concerns voiced by the superannuation industry to 2 major changes to the fund performance test.
In the Senate Standing Committee’s on Economics report into the YSYF reform released on April 29, Labor noted that the proposed Bill would damage retirement outcomes of Australians and subject our superannuation system to risk.