Federal Budget- Super Contributions

Some bad news here with regard to the matching of super contributions for workers earning less than $60,342. The governments matching will be reduced from $1.50 for every dollar invested in super to $1 for the next 3 years. It’s been promised this is a temporary measure until 2014 but will still impact on low income earners that are putting away savings for their retirement.

The super contribution cap by salary sacrifice will be reduced from $100,000 to $50,000 for the next 3 years, and further reduced to $25,000 in 2013. For those that had planned on retiring in the next few years and were eagerly putting away your pay, this could impact you and you should investigate other options available.

I suppose one of the small ‘benefits’ of the super changes is that the retirement age to be eligible for the pension is also increasing to 67 years of age, which will mean we have more time to save for our retirement.

With these changes to Super it’s definitely worth while talking to a financial planner, or seeking some specialist advice. If you wanted to do either contact us for a chat and we can help.

Ray

May 22nd, 2009 | Leave a Comment »