Percentages are all well and good, but let’s take a look at what the increases look like as actual dollars going to your super account:
(Remember, your employer’s contributions to your super come from your pre-tax salary. This means they’re concessional contributions, which are taxed at 15% when they reach your super account.)
So, what will those extra contributions look like over time?
According to projections from the Association of Superannuation Funds of Australia (ASFA), a 30 year old with a starting balance of $40,000, earning average career wages, could expect to have an extra $85,000 in their super when they retire at 67 was a result of the SG increasing to 12%*.
Let’s look at what their balance at retirement would be if the Superannuation Guarantee:
- Remains at 9.5%: $449,000
- Rises to 10% and stays at 10%: $468,000
- Rises to 12%: $534,000
You can calculate the impact of the increases on your balance with our retirement income simulator.
*Source: ASFA Economic Snapshot 2 July 2021. Projections for illustrative purpose only. In reality, a worker will not earn average wages throughout his/her career.