Rudd Government to close the gap on retirement savings
The Rudd Government is looking at “closing the gap” on retirement savings as part of its plan to use inflation-fighting reforms to boost national savings.
The Government has decided against directing $31 billion in income tax cuts through the superannuation system but believes that some families could choose to use the tax dividend to boost their retirement savings.
Superannuation Minister Nick Sherry said that “in terms of superannuation generally there are some adequacy gaps. There’s a very complex set of issues in a defined contribution system. You need to be in the system for 35 years to have adequate contributions”.
“There are significant groups of workers – older workers and women – who are not in the system for that long. My hope is that we will set out measures in which to close the gap in retirement savings in the current system,” Minister Sherry said.
The Rudd Government is expected to announce reforms to self-managed superannuation funds during March prior to the May Budget.
