Workers will be around $20,000 better off in retirement as a result of the government going ahead with the legislated increase to the SG, new research from a key industry body has revealed.
ASFA released new analysis on Wednesday of the impact of the increase in the SG to 10 per cent, which is set to come into effect on 1 July.
The data found that the increase would generate $19,000 more in retirement for the average Australian worker. This was the case across most Australian states, with average retirement balances projected to rise from $463,000 to $482,000 for workers in NSW, from $440,000 to $458,000 for workers in Victoria and from $434,000 to $451,000 for workers in Queensland.
“It’s clear that the super guarantee rise puts Australians firmly on track to achieve the dignified retirements they deserve,” ASFA deputy chief executive Glen McCrea said.
If successive increases in the SG continued as legislated, the average worker would generate an extra $85,000 in their super account at retirement, according to the statistics.
This amounted to an average retirement balance of $551,000 for NSW workers, $523,000 for Victorian workers and $515,000 for Queensland workers.
The current ASFA comfortable retirement standard is $545,000 and only 25 per cent of workers were achieving this under the current settings, but this would rise to 50 per cent of workers if the SG reached 12 per cent.
“It’s a significant shift which will underpin Australia’s fiscal sustainability by diminishing the reliance on the age pension,” Mr McCrea said.
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