The Institute of Public Accountants (IPA) has called on the government to increase the annual concessional contribution caps for those nearing retirement.
The IPA, which made the recommendation as part of its pre-budget submission, said it believed it was crucial the cap for Australians aged between 50 and 60 should be raised to $50,000 and to $75,000 a year for those aged over 60.
“By increasing concessional contribution caps for those aged over 50 years, it would allow them to make more adequate preparations for retirement in their final years of employment,” IPA chief Andrew Conway said.
According to the Australian Bureau of Statistics, the current median superannuation balances of Australians in the 55-to-64 age bracket were $90,000 for men and $60,000 for women.
“Whilst in the short term, increasing the concessional contribution caps may be a cost to the government, it will help to increase Australia’s superannuation balances and therefore reduce the number of people reliant on government benefits in the future,” Conway said.
“Increasing the concessional contribution caps will also help women who take time out of the workforce to raise families.
“With women on average having lower superannuation balances than males of the same age, other than those in the youngest age bracket, it becomes even more critical that we provide them with the opportunity and means to increase their superannuation balances as they prepare for retirement.”
