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super savings are falling across the country

Dec, 18, 2012 | No Comments | news

People across Australia could soon be in need of superannuation advice, as new figures show that retirement savings are falling across the country.

Figures from the Financial Services Council (FSC) reveal that people are putting less into their super funds, with contributions declining by $900 million in the three months to September compared to the previous quarter.

In relation to same period of last year, savings have fallen in excess of $1 billion.

Chief economist at the FSC James Bond said that people are feeling cautious about setting money aside for retirement at the moment.

He continued: "A flat domestic economy and continued uncertainty overseas have combined to see poor flows to superannuation.

"Although a decline in contributions is expected every September quarter – reflecting large contributions in June before the end of the tax year – the decline in September 2012 is larger than the usual seasonal pattern."

Mr Bond noted that it was not entirely unsurprising that a fall in savings had been registered – but the extent of the fall had been rather unprecedented.

One of the factors influencing people's decision to save for retirement is the reduction in the super ceiling for people over the age of 50, which was cut from $50,000 to $25,000.

The legislation came into effect on July 1 and had an impact on Australians with super balances over $500,000.

How to approach your super

No matter how much or little you may have set aside for retirement, it is essential to seek super advice so you know how to make the most of your money.

An expert will be able to provide tips best suited to your personal situation and offer guidance on maximising contributions in the most effective ways possible.

It might be that you are recommended to convert your assets to super in return for favourable tax treatment, or making contributions to your spouse's super fund.

There are various ways to maximise your savings that you may never have considered in the past, but could make a real difference to how much you have to live on when you eventually retire.

Failing to think about your super until it is too late can have major implications for your financial security, potentially meaning that you cannot do the things you have always dreamed of.

Acting now will give you peace of mind that your retirement will be a happy and prosperous one.

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