Not enough people contributing above SG level
The portion of superannuation members making contributions above the superannuation guarantee (SG) level of 9.5 per cent grew slightly in the 12 months to January, hitting 20.8 per cent, according to Roy Morgan Research.
Data collected by the research house since 2010 found that, until 2017, the amount of individuals paying above the SG was shrinking.
While it grew in the year to January, 2019, it was still a very marginal increase, up 0.4 per cent from the previous year.
Furthermore, those contributing above the SG were largely high income earners, which Roy Morgan said presented “a major problem” to those on lower salaries.
The Government said that the SG rate ultimately needs to hit 12 per cent to provide an adequate retirement income, but reaching this level has been delayed until at least July, 2025.
It planned to increase the the SG rate to 10 per cent in 2021.
Roy Morgan Research industry communications director, Norman Morris, said that this showed the importance of individuals investing above the SG to increase their chances of having a comfortable retirement.
On average, Australian households now only held just 27.4 per cent of their net wealth in superannuation.
AUTHOR
Hannah Wootton
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