- The average worker will be $21,000 better off in retirement
- Mandatory super payments increase
New analysis shows the average Australian will be $21,000 richer in retirement after changes to superannuation benefits come into effect from this month.
The Superannuation Guarantee, or the monthly pension payment that employers must make to their employees’ pension funds, was increased this month from 11 percent to 11.5 percent.
The Treasury Department estimates that the average worker earning $72,000 will have $21,000 in savings after retirement.
The government is gradually increasing mandatory payments from 10 percent to 12 percent of income. The guaranteed 12 percent will come into effect from July 2025.
The average worker will have about $64,000 more left at retirement, taking into account all the increases in Super from 10 per cent to 11.5 per cent.
“Rising wages and tax cuts mean people have money in their pockets now, and our increase in the pension guarantee means people have money in their pockets in the future,” said Finance Minister Jim Chalmers.
‘This will make a real difference to millions of Australians who deserve a decent retirement.
“The pension guarantee has tripled under our administration, which means the average worker will have an extra $64,000 in retirement.”
The pension payment that employers must pay into their employees’ pension funds each month has been increased this month from 11 percent to 11.5 percent
The average Australian worker earning $72,000 a year will have $21,000 in savings at retirement because of the change
The Ministry of Finance expects that part-time workers will also receive additional savings through the new guarantee.
A 35-year-old retail clerk who works part-time can expect to have an extra $5,000 in retirement, due to the 0.5 percent increase from 11 percent to 11.5 percent.
Superannuation is intended to provide financial security to Australians in retirement and to reduce pressure on pensions.
Prime Minister Paul Keating introduced the plan in 1992.
“Labor built Australia’s superannuation system, we’re proud of it and we will always fight to strengthen it,” Chalmers said.
Finance Minister Jim Chalmers said the increase in Super would make a “meaningful difference” to retired Australians.