Leading financial advisory firm, Dixon Advisory, has backed measures announced as part of tonight’s Federal Budget aimed at helping older Australians face the challenges of saving and funding for retirement.
While the firm’s head of advice, Nerida Cole, expressed concerns as to how economic and political uncertainty could have long-term impacts on Australians’ retirement savings, she welcomed three changes aimed at over 65s.
The changes included removing the work test, allowing people aged 65 and 66 to access the “bring forward” contribution rules, and extending the eligibility age for the spouse contribution tax offset up to 74 years of age.
“These changes will remove some of the barriers faced by older Australians in boosting their super at retirement at a time when they need it most,” Cole said.
“They’ll also help couples restructure their super to ensure a more even split between both individuals.”
Cole said changes to the spouse contribution tax were particularly important given female baby boomers often hit retirement with a significantly lower super balance than their male partner due to historical systemic barriers.
“More flexibility for older Australians means it will be easier for them to fund their retirement,” she said.