Retirement
How will the SG boost change your retirement?
Workers are set to benefit from a $20,000 boost to their retirement as a result of the upcoming super guarantee increase, new research has revealed.
How will the SG boost change your retirement?
Workers are set to benefit from a $20,000 boost to their retirement as a result of the upcoming super guarantee increase, new research has revealed.
The upcoming superannuation guarantee increase to 10 per cent, due to take effect on 1 July, is expected to generate $19,000 more in retirement for the average Australian worker, research by the Association of Superannuation Funds of Australia (ASFA) has revealed.
According to ASFA, the legislated rise in annual half per cent increments from 10 per cent this year through to 12 per cent on 1 July 2025, will put Aussies firmly on track to achieve “the dignified retirements they deserve”.
“For the average Australian worker, the July super increase represents an extra $19,000 in their super nest egg at retirement,” said ASFA deputy CEO and chief policy officer Glen McCrea.
“The long-term benefits of the system reaching 12 per cent are even greater. For the average Australian worker, the change will mean an extra $85,000 in super at retirement,” Mr McCrea noted.
Based on ASFA’s research, for an average 30-year-old worker living in NSW, the impact of the SG increases will yield an average retirement of $551,000. In Victoria, the sum would equal $523,000, and in Queensland, $515,000.
ASFA’s current comfortable retirement standard sits at $545,000 for a single person.
“Currently, only 25 per cent of Australians achieve a self-funded retirement,” Mr McCrea revealed.
“By 2050, that number is set to double as a result of the super system moving to 12 per cent. It’s a significant shift which will underpin Australia’s fiscal sustainability by diminishing the reliance on the age pension.”
Retirement impact across the country
|
State/Territory |
Impact of SG remaining at 9.5% |
Impact of SG 10% on 1 July |
Impact of SG 12% on 1 July 2025 |
|
NSW |
$463,000 |
$482,000 |
$551,000 |
|
Vic |
$440,000 |
$458,000 |
$523,000 |
|
Qld |
$434,000 |
$451,000 |
$515,000 |
|
SA |
$425,000 |
$443,000 |
$504,000 |
|
WA |
$472,000 |
$491,000 |
$562,000 |
|
Tas |
$410,000 |
$426,000 |
$485,000 |
|
Australia |
$449,000 |
$468,000 |
$534,000 |
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