Our government has limited the ability of members in their pre retirement years to increase their superannuation contributions. This fact has received wide criticism in the press. Previously, people approaching 50, who were most likely to be free of children and a mortgage would direct large amounts into super via salary sacrifice arrangements.
Our benevolent current government has limited the contributions one can make to a mere $25,000.
Major accounting bodies are arguing for more generous concessional treatment for over 50s. The government should be encouraging people to top up their super and provide for a better retirement. Do want to be 68, retired and with limited funds in super? Then talk to your local member about your concerns for your superannuation and retirement.
It is well document that the baby boomer generation does not have enough in super to comfortably retire. Experts advise for a moderate lifestyle in retirement, a couple would require between $500,000 and $850,000 in their combined super. This is vastly different from reality, people aged between 50 -54 have average balances for men of $120,000 and women $80,000. A big shortfall to contemplate.
If the government allows these people to increase their contributions, then surely it must go a long way towards reducing the future costs of government pensions.
DISCLAIMER: The above is general advice only, you should not act on this advice without consulting a professional adviser to discuss your personal circumstances.