Australia: Superannuation provider Aviva plans extra shifts for year end ‘Super Tuesday’

Superannuation provider Aviva is planning extra shifts for staff between now and Tuesday 30 June 2009 as Australian investors rush to beat the superannuation cut-backs announced in yesterday’s Federal Budget.

Aviva staff are working extra shifts nationwide to enable customers to beat the 30 June 2009 deadline for investments over A$25,000. 

“We are putting together a team to ensure we spearhead administration so that extra contributions are invested in time," said Tim Cobb, general manager - marketing and public relations.

“We will issue a timetable this week so that we have staff in place and advisers and clients can beat the rush. In the year to date, we’ve received the highest level of super contributions for the week, even before the budget announcement. This largely reflects investor concerns that budget changes would come into effect immediately.  The fact that the contribution limits do not reduce until 1 July 2009 means that there is still a small window of opportunity for customers to get advice and act – but they’ll need to be quick.

"In 2007 we stayed open on Saturday 30 June and customers invested millions of dollars.  We expect to see exactly the same thing again this year. We provide a huge range of investment choices and those who aren’t sure about getting back into equities, just yet, may well put some of their super money in term deposits while they pick the right time," said Mr Cobb.

The self employed can make a deductible contribution of A$50,000 (or A$100,000 for those aged over 50) by 30 June but only have six weeks to act.  Those who are salaried employees can only make contributions through salary sacrifice. 

“Employed people really need to act this week and speak to their adviser and their employer to get the maximum impact,” said Mr Cobb.

Aviva says that making extra contributions is not about beating the system but about allowing investors to stick to their retirement plans.  There will be many clients who have plans in place to contribute more than A$25,000 per year (or A$50,000 for those aged over 50) for the next few years to boost their superannuation for retirement.  The Budget announcement means these plans need to be reviewed so that pre-retirees who wish to provide for themselves, will need to put more in this year.  

“This is a real blow to those who are trying to fund their retirement, at a time when they have been hit by falls in asset values, and now people need to once again reassess their long-term planning,” said Mr Cobb.

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For more information:
 
Ariana Alvarenga
Assistant Manager - Public Relations
Phone: (03) 9829 8985
Mobile: 0409 187 487 

Sue Voglis
Research & Public Relations Manager
Phone: (03) 9829 8057
Mobile: 0408 309 247