One small change is set to make a huge improvement to the future of working Australians and that’s an increase in the amount of superannuation paid by employers on top of wages.
It’s an increase some people will barely notice and others may miss altogether, but in 10 to 40 years’ time, many are sure to be thankful they have more money to retire with.
Under government legislation, super contributions will begin to rise by 0.5 per cent increments from July until they reach 12 per cent in 2025.
These small increases add up a big boost to the average worker’s nest-egg.
Research by Industry Super Australia shows a 30-year-old worker on an average wage stands to gain more than $85,000 in extra super by the time they retire.
That sum could make all the difference between a retirement of haves and have nots.
On the one hand, a future with regular holidays and on the other, a future spent worrying about how to stretch the dollars further.
The super increase comes at a crucial time for Australia’s economy, which is beginning to recover after the worst of the COVID-19 pandemic.
Rising super contributions will be welcome news to the 4.5 million Australians who withdrew $34.4 billion via the early super access scheme introduced by the federal government in the wake of the coronavirus pandemic.
With more super in their retirement savings, these Australians will be able to recover some lost ground.
While the average Australian may not be aware of the imminent lift in super contributions – polls by research firm UMR reveal just 11 per cent know of the increase – every worker stands to benefit.
They also deserve to know the difference it will make to their future.
Find out more.
Industry SuperFunds are investing in projects that strengthen our economy and your retirement savings.
See www.industrysuper.com/assumptions for more details about modelling calculations and assumptions. Consider a fund’s Product Disclosure Statement (PDS) and your personal financial situation, needs or objectives, which are not accounted for in this information, before making an investment decision.