Call for increased super contributions

A major superannuation group is calling for an increase in compulsory super contributions beyond the current nine percent, to 12 percent.

In May the committee chaired by Treasury secretary Ken Henry advised against an increase in compulsory super, but the Australian Institution of Superannuation Trustees is calling for another review.

The superannuation trustee board is arguing for an extra three percent forced contribution, but the payment should be taken as an annuity or retirement. The group believes it would help boost retirement income and alleviate the dangers of retirees exhausting their super funds too early.

The trustee group’s chief executive, Fiona Reynolds said: “In the future, as life expectancies rise we may need to think about taking some of our super as an income stream.”

Superannuation Minister Chris Bowen has left open the door to increasing compulsory super contributions.

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