Thanks to a ginger group of backbenchers, the super guarantee is back in the spotlight and the promised increase to 12 per cent is once again under threat.
Despite the Prime Minister ruling out any changes to the super guarantee, there is a persistent group of backbenchers – who are entitled to more than 15 per cent in super – determined to take ordinary Australians’ retirement savings away from them.
Unfortunately for this minority of MPs, Australians have thrown their support behind our super system, with 87 per cent of people surveyed supporting an increase in super contributions above the current level of 9.5 per cent.
The new research, released by Industry Super Australia, found Australians overwhelmingly rejected the push to freeze super contributions. It found Australians back our compulsory superannuation system – like they back Medicare.
The results also show the anxiety many Australians feel about their retirement, with 43 per cent of people surveyed expecting to retire with under $200,000 in their super account.
New analysis by Industry Super Australia shows the damage freezing super contributions could do to a family’s retirement savings.
If super contributions were frozen at 9.5 per cent, a 30 year old worker earning $85,000 a year would stand to lose $147,000 from their super by the time they reach retirement. That’s the equivalent of nearly $5,500 extra a year in retirement.
If this worker and their partner have children, and the partner spends a few years out of the workforce having kids, the partner could lose up to $93,000. Together, their family could lose $240,000 in super.