Super fund members could be in the race for an account boost if they enter the Association of Superannuation Funds of Australia ‘s 2017 Super Booster Day competition. On offer are one of five, $1,000 prizes to boost retirement savings.
To be eligible fund members are asked to pledge some extra money for their super before 15 September 2017 and describe their dream retirement in 25 words or less.
ASFA runs the Super Booster Day campaign annually with Bauer Media and Money magazine and the program is supported this year by ASFA’s Super Guru, as well as Cbus super fund, ING Direct, QSuper, Sunsuper and UniSuper.
ASFA CEO Dr Fahy and Money magazine’s Effie Zahos took the opportunity created by the competition to urge Australians to get smart with their super.
“The more you get to understand the beauty and simplicity of super as a savings tool, with its tax and compound interest benefits, the more you will realise the dream of living longer and healthier through your super investments,” they said.
“Even young people should be planning ahead and talking to their fund about how to achieve the life they want as they age. Retirement planning is smart for all ages.“Once you get started you will find it fun to make your money work in your best interest by communicating effectively with your super fund,” they said.
“Now the super system is maturing and more and more Australians are enjoying increased super balances, people can attest to the true benefits of decent super,” they said.
“We expect more Australians and young Australians will push for an increase in the Super Guarantee payment so their futures are better funded,” Dr Fahy said. “People know they need good super balances to have a dignified retirement.”
SG payments have considerably enhanced the retirement reality for an increasing number of people, with a 40 per cent increase in the real level of average income at retirement since 1992.
Based on revised laws, the Superannuation Guarantee (SG) rate will remain at 9.5 per cent for another five years, increasing to 10 per cent from July 2021, then 12 per cent from July 2025.
ASFA and the industry remain committed to lifting the SG as soon as possible and preferably consistent with the original timetable for increases.
“Every day the SG stagnates, people’s wealth is reduced,” Dr Fahy said.
40 year old, current super balance of $80,000, salary of $70,000 a year.
With current SG scheduled increases, balance of $456,000 at retirement.
Increases to $475,000 if SG went immediately to 12 per cent.
30 year old, current super balance of $40,000, salary of $60,000 a year.
With current SG scheduled increases, balance of $515,000 at retirement.
Increases to $537,000 if SG went immediately to 12 per cent.