Regulatory risks will see superannuation take a back step to voluntary savings in the year ahead, according to ING national technical manager Graeme Colley.
Due to a lack of confidence in superannuation people are likely to have a greater reliance on voluntary savings until they are close to retirement age, at which point they’ll revert to superannuation, Colley said.
They are of the view that the “Government is still mucking around with super”.
“You mention super and a number of people will say, ‘Well I can’t trust it like I used to’,” he said.
Colley agrees that while people are certainly interested in superannuation as a tax effective strategy, they are a bit “gun shy”.
However, he believes there will be a return to confidence once the Henry and Cooper reviews have been bedded down.
He said he hopes the Cooper review will “settle down the administration of superannuation funds and put some good models in place”.
