The super guarantee (SG) should be moved to 12 per cent s soon as possible, rather than 2021, according to the Association of Superannuation Funds of Australia (ASFA).
AFSA chief executive officer, Martin Fahy said this provides an opportunity to accelerate the move sooner, if the upcoming budget demonstrates an early pathway to surplus.
“Each year we delay is costing Australians superannuation savings that could help improve their retirement outcomes,” said Fahy.
ASFA retirement models showed an average earner aged 30 on a $70,000 salary would have $71,600 less when retiring at 67 if the SG stays at 9.5 per cent.
Bringing forward the timetable for lifting the rate of the SG by two years would boost their retirement savings by $7000.