Discretionary superannuation contributions have shown the highest growth rate in seven years according to The Bond Report released today by the Financial Services Council.
James Bond, FSC chief economist said: “Between September 2013 and September 2014, member contributions to superannuation funds increased from $4.2 billion to $5.9 billion − 38 per cent −which is the fastest growth since June 2007.”
“An increase in the tax threshold for concessional contributions to $30,000 and to $35,000 for 50 to 60 year old workers on 1 July is the most likely cause of the significant growth in voluntary contributions,” Mr Bond said.
“Discretionary superannuation contributions have accounted for the $1.6 billion (7.2 per cent) growth in superannuation contributions since September 2014 while employer contributions have remained flat.”
“This is evidence of the income recession which has resulted from low employment and wages growth.”
The FSC also released a separate report on the quarterly MySuper data released by APRA.
The report shows that MySuper now accounts for 33 per cent of APRA regulated funds and $378 billion of the $1.87 trillion pool of superannuation funds.
“MySuper assets received a significant boost between September 2013 and September 2014 when $149 billion was transferred from existing default funds to MySuper,” Mr Bond said.
“Compared to industry wide assets, MySuper funds have a larger allocation to international equities and infrastructure but less invested in cash.”
