Couples may need $120,000 more for comfortable retirement
Policy changes to the age pension may mean people need to save more superannuation, the Association of Superannuation Funds of Australia (ASFA) said today.
Changes announced by the Government could require a couple to save around $120,000 more for a comfortable retirement.
"Increasing the taper rate for part-pensioners from $1.50 to $3.00 per $1000 of assets, while also increasing the threshold at which the asset test starts to apply, would require a couple to save around $120,000 more for a comfortable retirement, requiring a super balance of $630,000," ASFA chief executive, Pauline Vamos, said.
Under the current age pension assets test framework ASFA estimates that a couple would need a joint super balance of around $510,000 to achieve a comfortable retirement. This assumes as they draw down on their capital and their income decreases, a part age pension will cover some of the shortfall.
"The age pension and superannuation systems are strongly linked, meaning adjustments to the taper rate and thresholds for the assets test will impact how they plan to fund their retirement," Vamos said,
"In most cases, people will require higher levels of private savings to ensure they have enough income to accommodate their spending needs."
