Under 40s’ low savings to be addressed
A Parliamentary Committee will investigate the adequacy of superannuation savings for people aged under 40, following a reference from the Assistant Treasurer, Mal Brough.
The House of Representatives Economics Committee has said it will be examining the issue in response to concerns that the superannuation savings of young adults may be falling short of the optimum savings level required to fund their retirement incomes.
Announcing the inquiry, the chair of the Economics Committee, Bruce Baird said that its findings would be important because it was focusing on the formative years of superannuation savings rather than savings in the later working years.
He said the committee would be focusing on the importance of young adults laying strong foundations for retirement savings and the reasons why this age group might not be participating, or are under-participating, in superannuation savings.
“We need to better understand the current incentives and disincentives that govern contributions to superannuation for the under 40s,” Baird said. “It is important that this age group views superannuation savings as a necessary and positive way to fund their retirement income and future lifestyle choices,” Baird said.
The committee is expected to report to the Parliament late next year.
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