Powered by MOMENTUM MEDIA
Powered by momentummedia
nestegg logo

Retirement

Fantasy wage growth means super must rise: ACTU

  • August 24 2020
  • Share

Retirement

Fantasy wage growth means super must rise: ACTU

By Cameron Micallef
August 24 2020

As wage growth remains stagnant, the only way to have a dignified retirement is through growing the superannuation benefit, a union has said.

Fantasy wage growth means super must rise: ACTU

author image
  • August 24 2020
  • Share

As wage growth remains stagnant, the only way to have a dignified retirement is through growing the superannuation benefit, a union has said.

Fantasy wage growth means super must rise

According to the ACTU, since the government last delayed the increase of superannuation from 9.5 per cent to 12 percent on the promise of higher wages, Australia has actually seen record-low increases.

Even before the pandemic hit, Australians’ real wage growth was less than 0.5 per cent since the super freeze started.

The union said failure to lift rates will lose more than $14.1 billion in super a year if the increase is cut, with the average person losing around $1,630 in savings a year.

Advertisement
Advertisement

ACTU president Michele O’Neil said increasing the superannuation guarantee won’t stop workers receiving a higher wage, with delays just resulting in poorer outcomes in retirement.

Fantasy wage growth means super must rise

“If Scott Morrison’s answer on how to manage the pandemic is to rob workers of a decent retirement, he’s got it all wrong,” Ms O’Neil said.

“Since the government last delayed the increase in super from 9 to 12 per cent on the promise of higher wages, we’ve seen record-low wage growth.

The union boss pointed out that Australia should be looking at it’s economic future post the COVID-19 pandemic, instead of focusing on punishing workers today.

“This is asking working people to believe in the same fantasy that Tony Abbott used the last time this government stopped workers getting their super increase. It was false then, and it’s false now. There is no evidence that employers will pass on one cent of unpaid super to workers in wages,” Ms O’Neil concluded.

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on X for the latest updates
Rate the article

About the author

author image

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

author image
Cameron Micallef

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

more on this topic

more on this topic

More articles