11.5 per cent Superannuation Guarantee forecast to deliver up to $21,000 for retirement savings bump
News.com.au
July 21, 2024
The average Australian will be $21,000 richer in retirement following changes to superannuation payments that kick in from this month, new analysis has revealed.
The Superannuation Guarantee, or the retirement payment employers must pay into employees’ super funds each month, lifted from 11 per cent to 11.5 per cent this month.
The Treasury Department estimates an average worker on $72,000 will pocket an $21,000 in savings at retirement from the change.
The government is progressively lifting the mandated payments from 10 per cent to 12 per cent of earnings, with the 12 per cent guarantee to kick in from July 2025.
The average worker will pocket about $64,000 more at retirement taking into account all rises in Super from 10 per cent to 11.5 per cent.
“Wages growth and tax cuts are putting cash in people’s pockets now and our increase to the super guarantee will put cash in people’s pockets for the future,” Treasurer Jim Chalmers said.
Federal Treasurer Jim Chalmers said the lift in Super would make a ‘meaningful difference’ for Australians in retirement.
“The superannuation guarantee has increased three times under our government and this means an extra $64,000 at retirement for the average worker.”
The Treasury estimates part-time workers will also receive a savings boost from the new guarantee.
A 35-year-old part-time shop assistant is expected to pocket an extra $5000 at retirement from the 0.5 per cent lift from 11 per cent to 11.5 per cent.
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Superannuation is designed to ensure financial security for Australians in retirement and reduce pressure on pensions.
Prime Minister Paul Keating introduce the scheme in 1992.
“Labor built Australia’s superannuation system, we are proud of it and we’ll always fight to strengthen it,” Mr Chalmers said.
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