The share market’s up & there are “positive sounds” from the government on super
The Australian share market and possible changes to superannuation and Future of Financial Advice (FOFA) legislation were among the topics covered in a recent discussion between Dixon Advisory’s Daryl Dixon and Nerida Cole and Nightlife presenter Tony Delroy on ABC radio.
Discussing the share market, Daryl said the larger companies, the dividend payers, had strived “to be more efficient, so their profits are up, and, more importantly, their dividends are up”.
When the conversation turned to superannuation, Nerida spoke about the “positive sounds” from the government that it intends to reduce some of the complexity and confusion around super.
“Some of the areas that we’ve heard they’re looking at is around excess non-concessional contributions and perhaps the self-employed rules . . . removing some of the complexity that makes it a bit more difficult for people to actually make use of the superannuation system than it needs to be,” Nerida said.
Daryl and Nerida explained some of the issues around suggestions that the retirement age be raised to 70 and access to tax-free super be raised to 65 and highlighted the fact that people’s capacity to work and their health varied as they got older.
Daryl said it was necessary to be “more sensitive to the needs of the population” in providing access to super.
“My preference would be to have flexibility that people can have access to their super even at a younger age; for example, all those poor people who are unemployed in areas where they won’t be able to easily get jobs,” he said.
Listen to the full interview with Daryl and Nerida and the discussion with callers on 25 February 2014. It runs for about 40 minutes.