Another blow to self-funding retireesDOWNLOAD
“The Treasurer’s announcement that concessional superannuation contribution caps will be more than halved for all contributors from 1 July 2009, means that in less than three years the level of deductible contributions for those nearing retirement have been slashed by more than 50%,” said Deloitte Superannuation Partner, John Randall.
“The Simpler Super regime from 1 July 2007, reduced the standard concessional contributions from more than $100,000 to just $100,000 for a five year period, and from then it dropped to $50,000,” he explained.
“With effect from 1 July 2009, the concessional contribution cap will now be further reduced to $25,000, with transitional caps of $50,000 for three years available for those aged 50.
“This is yet another blow to those approaching retirement who have had both their superannuation savings savaged through the global financial crisis, and now with these announcements, have a much reduced capacity to make up their retirement savings,” Randall said.
“The social implications of these changes will mean that people may be forced to delay their retirement, and retirees may well need to become more reliant on the aged pension as they begin to outlive their superannuation savings,” he said.