Lift super guarantee, says AMP

The Federal Government has received another strong message on the need to lift the superannuation guarantee beyond the current 9 per cent, with the latest AMP Natsem Income and Wealth Report urging it to be lifted to 12 per cent.

The report, released today, claimed that increasing the super guarantee would add up to $150,000 to a young person’s retirement savings by age 65.

In similar tone to a Deloitte survey conducted over the past month, the AMP Natsem report confirmed that most people were not saving enough for a comfortable retirement, with savings levels remaining low and the average Australian saving just $300 a year, equating to less than $6 a week after tax.

However, on the good news side of the ledger, the AMP Natsem research revealed that Australians were developing better savings habits, with the household debt to disposable income ratio stabilising and Australians saving a greater proportion of their income.

Commenting on the survey results, AMP Financial Services managing director Craig Meller said it revealed Australians were getting better at saving but needed to do more to ensure they could afford the lifestyle they wanted.

“Increasing the superannuation guarantee to 12 per cent would significantly lift the adequacy of retirement savings for future generations,” he said. “For younger people this could mean the difference between enjoying lifestyle benefits in retirement like planning holidays or eating out [or] having to forego things they enjoy to pay the bills.”