Powered by momentummedia
nestegg logo
Powered by momentummedia
nestegg logo
nestegg logo

Retirement

MPs backbenching super plans could have $250k consequences

By Grace Ormsby · September 16 2019
Reading:
egg
Family

MPs backbenching super plans could have $250k consequences

author image
By Grace Ormsby · September 16 2019
Reading:
egg
Family

The push by some politicians to cut the planned super increase to 12 per cent could see Australian families standing to lose nearly $250,000 in retirement savings, new analysis from Industry Super Australia shows.

In a statement from the collective industry fund organisation, it voiced concern over the potential for the removal of an increase to the super guarantee from the current 9.5 per cent level.

It noted some federal backbenchers as wanting the government to cut the promised increase to super contributions, and considered it as “breaking a key election promise and denying local families the retirement savings they are entitled to”.

To support its concern, it cited new analysis that showed “if the super guarantee was frozen at its current rate of 9.5 per cent, a 30-year-old male earning $85,000 a year would stand to lose $147,000 from their super by the time they retire”.

It also reported that a 30-year-old woman earning $85,000 a year who takes time out of the workforce to have children could lose up to $93,000 from her nest egg if the contribution rate does not increase.

Advertisement
Advertisement

“For a local family, by the time they reach retirement, they could lose $240,000 in retirement savings,” the statement said.

Commenting on the political pressure being placed on legislated incremental increases to the super fund guarantee, Industry super Australia’s chief executive, Bernie Dean, said that “cutting the super increase will cost families around the country hundreds of thousands of dollars in retirement savings”.

He said that “Australians will be left struggling to make ends meet in retirement, or will be forced to work until they drop before they can retire”.

“If the government breaks its promise on super, everyone loses,” Mr Dean said.

“The Morrison government needs to reassure Australians that their retirement savings aren’t at risk.”

Industry Super Australia also cited its own research which showed an “overwhelming” majority of Australians – close to 90 per cent – support an increase in super contributions above the current rate.

MPs backbenching super plans could have $250k consequences
Family
nestegg logo

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

About the author

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

Join The Nest Egg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

About the author

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

Join The Nest Egg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

From the web

Recommended by Spike Native Network

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Copyright © 2019 MOMENTUM MEDIA