While $1 million was a considerable sum in today's terms, once medical and aged care costs are factored in, it could be inadequate. A $1 million pension fund in today's money will need to be at least $2.5 million in 30 years' time.
While the Prime Minister has ruled out tax changes on withdrawals by those with higher balances, the Government has so far declined to respond to other concerns.
Any Federal Government move on superannuation risks setting the retirement system up for failure, one national accounting industry peer warns, with the Government risking eroding confidence in superannuation.
"During recent weeks, the government has stigmatised Australian retirees who have set aside their own monies for independent retirement," they said, "Australians are going to need more retirement income and the current government is doing surprisingly little to help."
At G J Barnett & Associates, we support you through every stage of the superannuation process and provide you with full documentation necessary for the establishment and compliance for a super fund for up to four members, while being flexible enough to suit your individual needs. Talk with us on 02 9686 3130 about ensuring your SMSF is set up properly to reflect your retirement and investment wishes.
From: AAP, 27 February 2013