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3 out of 4 Aussies support SG rise to 12%

Adrian Flores
Adrian Flores
09 November 2020 1 minute readShare
nest egg

A survey has found that around 75 per cent of Australians want to see an increase in the super guarantee to 12 per cent amid increasing financial pressures to create a comfortable lifestyle in retirement.

The research from the Association of Superannuation Funds of Australia (ASFA) also found that only 12 per cent support leaving the SG rate unchanged at 9.5 per cent.

The gradual increase in the SG rate will begin from 1 July 2021 at a rate of half a percentage point each year until it reaches 12 per cent in 2025.

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It also found that 75 per cent of respondents indicated that they would struggle to live on the Age Pension alone, and that only 30 per cent indicated that they could have a comfortable lifestyle in retirement spending less than $50,000 a year.

Currently, the Age Pension is $24,551 a year for a single person and $37,000 a year for a couple.

 

According to ASFA, by lifting the SG to 12 per cent, it predicts half of all Australian retirees will be self-funded by 2050, which counters the pressure of an ageing population on generations of future taxpayers.

“Without question, Australians value their superannuation and they clearly support measures aimed at helping them to build the nest egg necessary to fund a dignified retirement in this country,” said ASFA chief executive Martin Fahy.

“With the legislated increase of the superannuation guarantee to 12 per cent, and as the superannuation system matures, we expect to see a greater proportion of retirees relying less on the Age Pension and more on their superannuation.”

1,375 Australians were surveyed in October about their views on superannuation, the Age Pension and their standard of living expectations for their retirement.

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State breakdown of support for 12% SG

 

INCREASE TO 12%

LEAVE AT 9.5%

UNSURE

NSW

71%

13%

16%

VIC

73%

16%

11%

QLD

75%

13%

12%

SA

78%

11%

11%

WA

79%

8%

13%

TAS

77%

9%

14%

Source: ASFA

3 out of 4 Aussies support SG rise to 12%
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Adrian Flores
Adrian Flores

Adrian Flores is the deputy editor of MyBusiness. Before that, he was the deputy editor for SMSF Adviser as well as features editor for ifa (Independent Financial Adviser), InvestorDaily, Risk Adviser, Fintech Business and Adviser Innovation.

You can email Adrian at [email protected].

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