Joint super accounts mooted
The Federal Government should consider allowing married couples to have joint superannuation accounts, according to actuarial consultancy, Rice Warner.
The consultancy has used its pre-Budget submission to argue the case for joint super accounts, including that it would deliver higher levels of engagement while, at the same time, reducing the number of superannuation accounts.
"We could reduce the number of superannuation accounts by several million," the submission argued. "If half of all couples exercised the option, there would be a reduction of 3.5 million accounts or 12 per cent of all accounts."
As well, it said that retirement benefit projects provided by superannuation funds would likely be more accurate and members would get a better picture of how they were tracking to retirement.
Rice Warner also argued that should a move would also help to reduce the female retirement savings shortfall as couples would plan their retirement finances together.
"The simplified structure for couples, combined with Member Direct investments now offered by several funds, would provide many of the benefits of a self-managed superannuation fund (SMSF)," the submission said. "This might appeal to those members who want the flexibility but not the responsibility of running an SMSF."
"An SMSF would have a simpler process too. Where both partners of a couple are the only members, the accounts would be much simplified as they wouldn't need separate annual statements."
Recommended for you
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
Former chair of the House of Representatives’ Standing Economics Committee, Tim Wilson, is planning a return to politics after losing his seat in the 2022 federal election.
Morningstar is going to offer research ratings of funds in the $3.5 trillion superannuation sector for the first time in response to demand from financial advisers.
Treasurer Jim Chalmers has opened a consultation into the design of the annual superannuation performance test, canvassing views on a range of reform options.
