Selecting 10 winners from hundreds of alternatives presents major challenges, and there are no guarantees past performance will continue. It mainly targets only $1 billion from the $150 billion contributed each year.
One person’s unjust retrospective policy change is another’s overdue and necessary reform. Did people objecting about unfavourable policy retrospectivity complain when they benefitted from a retrospective change?
Depending on the type of fund you use and whether you pay for advice, there is a large difference in the size of fees. It might be worth paying for extras but choose the fund and advice level that suits you.
Mercer says the nature of the workforce is changing and many part-time workers in the gig economy are excluded from super. It contributes to widespread disengagement and apathy towards super.
Most people think of super access in terms of age, but when life deals a cruel blow, the rules allow members early access subject to certain conditions. It’s a valuable safety net.
In considering whether setting up an SMSF is the right decision for you, weigh up compliance obligations and cost with the main advantages SMSFs offer over other super funds. The 6 key positives are enumerated here.
Labor’s franking proposal could affect many more super funds than expected, not only SMSFs, depending on the allocation to Australian shares, their franking and the percentage of assets in pension phase.
APRA’s letter to super funds highlights concerns about ‘cash’ investments. A lack of understanding might haunt investors when the next downturn comes as too many people forsake protection for yield.
Claims that zero tax rates on superannuation pension funds are a rort are misinformed because they ignore the taxes paid to put money into super, and the social contract that super was designed for.
Labor has foreshadowed significant amendments to a wide range of financial policies, and while the new PM has time to make up lost ground, Labor is favourite to win the next federal election.
Round 5 of the Royal Commission focused on superannuation. Conflicts of interest, trustee responsibilities and delays in meeting the legal obligation to transfer default clients to MySuper products featured.
What to do if super guarantee payments from multiple employers, combined with salary sacrifice arrangements, have resulted in a breach of the concessional contribution cap.
Amid the Royal Commission words like toxicity, rot, darkness and attrition, the super industry must rebuild trust with accessible, open and candid communication, and stop scoring own goals.
The Royal Commission stoked the coals on financial advice fees and commissions, taking three days to learn trustees and management are severely conflicted by best interest responsibilities.
APRA and the ATO do not measure fund performance in the same way. The discrepancy can cause SMSF performance to appear worse than it actually is, and better collaboration between regulators is required.
The $1.6 million Transfer Balance Cap (TBC) on pension accounts affects only capital balances. It’s not affected by income earned and pensions paid, and there are ways to maximise the remaining tax-free status.