In research conducted by UMR, only 19 per cent of Australians indicated that they expect to be able to live comfortably off their super in retirement, with a majority expecting to work longer to have enough money to retire, or be forced to rely on the pension if super contributions are not increased.
It indicated overwhelming support for an increase to the super guarantee, which currently sits at 9.5 per cent, with nearly nine out of 10 Australians (87 per cent) in favour of an increase.
Industry Super Australia chief executive Bernie Dean said the research suggests that Australians want an increase in super in order to fund their futures, with Australians “rightly concerned about their retirement and whether they will be able to make ends meet”.
“Freezing the super guarantee will force Australians to work longer and increase the burden on the pension,” Mr Dean said.
For the individuals surveyed, the increased reliance on the pension as a result of freezing super was a big concern, with two out of three respondents worried that everyday Australians would end up footing the bill as more people rely on the pension.
Employees also backed a higher compulsory superannuation payment due to current levels of low wage growth leading to lower growth in overall remuneration packages, according to the study.
The research highlighted that 43 per cent of Australians expect to retire with less than $200,000 in their super account.
According to Industry Super Australia’s analysis, if the super guarantee remains frozen at 9.5 per cent, a 30-year-old male earning $85,000 a year would stand to see $147,000 less super by the time they reach retirement, the equivalent of nearly $5,500 less per year in retirement.
According to Mr Dean, Australia’s superannuation system “was established to provide a safety net for working people in retirement”.
“It must be protected,” he said.
Cameron Micallef is a journalist at Nest Egg, writing primarily about personal wealth and economic markets.
Prior to this, Cameron worked for Australian Associated Press. He graduated from the University of Wollongong with a double degree in communications and commerce.