In an article for the website Super Review, Mike Taylor suggests that the prevailing Super tax regime can work quite well and lofty changes need not be made in the structure. It is nice to think of altering the concessional contribution cap, contravention threshold, and a few more things to an extent, but it does not mean we start making real big changes to the regime.
Uphold current concessions
Revered firm Rice Warner feels that it may be a smart move to uphold current concessions (taxation), and some good might come out of permitting 150% concessional caps for couples. Tax concessions, feels the firm, is a great medium to force employers to contribute to their employee’s cause.
Retirement cost stands at $40 billion; likely to go up to $50 billion by 2018
At $40 billion a year, cumulative retirement cost stands as the nation’s largest expense, and in another four years, this cost is only expected to go up by another $10 billion. It is crucial that unlike the Baby Boomers, our coming generations understand that however far it may seem, one day they will come close to the retirement age and that their superannuation savings should reflect enough to allow them a decent post-retirement living.
You can read the original article here.
Baby boomers hugely short of amount needed to decently retire
The baby boomers are woefully short of the kind of money they need to live an averagely decent life and women in particular — because of their higher life expectancy — may find things more difficult to manage. After all, they are likely to have only $58,000 with them compared to $85,000 that men are likely to have in their retirement nest egg. This said, even the men will be trading only marginally better as nothing short of $350,000 can ensure a decent life after retirement for the BBs.
How have you diversified your investments and what savings are you expecting (around the retirement age)?