Many Australians could have their retirement savings boosted by some $17,000 after the Federal Government abolished the superannuation surcharge when it took control of the Senate this week.
An analysis by AMP shows that individuals who salary sacrifice $10,000 a year into their superannuation funds, and who previously would have been lumbered with the unpopular tax, will now accumulate $135,902 when they retire after 10 years, compared to just $119,113 before the surcharge was removed.
After 20 years, people’s retirement savings would have been boosted by 13 per cent, according to AMP.
Commenting on the findings, AMP financial planner Andrew Heaven said: “With more people retiring early and rising life expectancy, Australians are now spending more than a quarter of their life in retirement.
“For those looking forward to life after work this is good news, but it also emphasises the importance of saving for retirement.
“The removal of the superannuation surcharge will have a significant impact on the amount of money people have to fund their retirement and will mean less reliance on the public purse in future.”
