The ABA says banks are receiving ‘numerous’ inquiries from customers worried about their retirement security because of potential increases in taxation on superannuation.
Steven Münchenberg, chief executive of the ABA, says the organisation has been advised by banks that many customers are concerned about their financial security in retirement because of speculation the Government plans to increase the level of tax on retirement savings.
“Successive governments have rightly urged Australians to save for their retirement. The current government has said its previous superannuation reforms were directed towards increasing the savings and security Australians have in retirement. The proposals now being considered appear to reverse that approach. On-going speculation and change undermines confidence in superannuation, discouraging Australians from making voluntary contributions and raising uncertainty over whether superannuation delivers the financial security customers are looking for.”