Australians support increasing SG
A nationwide survey has found that 75% of surveyed Australians support increasing the superannuation guarantee (SG) to 12% with only 12% of respondents in favour of leaving the SG rate unchanged at 9.5%, according to the Association of Superannuation Funds of Australia (ASFA).
At the same time, 75% of respondents said they would struggle to live on the Age Pension alone while 30% indicated that they could have a comfortable lifestyle in retirement while spending less than $50,000 a year.
By lifting the SG to 12% half of all Australian retirees would be self-funded by 2050, countering the pressure of an ageing population on generations of future taxpayers, according to ASFA’s predictions.
Currently the Age Pension was $24,551 a year for a single and $37,000 a year for a couple, it said.
“Without question, Australians value their superannuation and they clearly support measures aimed at helping them to build the nest egg necessary to fund a dignified retirement in this country,” ASFA’s chief executive, Martin Fahy, said.
“Australia’s superannuation system enables Australians to retire with dignity. With the legislated increase of the Superannuation Guarantee to 12 per cent, and as the superannuation system matures, we expect to see a greater proportion of retirees relying less on the Age Pension and more on their superannuation.”
AUTHOR
Oksana Patron
Recommended for you
AMP is to launch a digital advice service to provide retirement advice to members of its AMP Super Fund, in partnership with Bravura Solutions.
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
The second tranche of DBFO reforms has received strong support from superannuation funds and insurers, with a new class of advisers aimed to support Australians with their retirement planning.
