Super is about to increase
From 1 July 2021 employer contributions to super are going up from 9.5% to 10%. This increase will go towards a healthier balance at retirement. Learn more about why it’s going up and how it will impact you.
Superannuation is compulsory savings for your future.
How super works
Your employer pays a percentage of your salary into super. Since 1 July 2014 and up until 30 June 2021 that percentage, called the ‘Superannuation Guarantee’ (SG) has been 9.5%. From 1 July 2021 it will rise to 10% and will continue to increase by 0.5% every year until 2025 where it will remain at 12%, unless further changes are made.
Why is super going up?
Plans have been in place to gradually increase the SG over time. The SG rate was 9.5% on 1 July 2014 and was supposed to increase to 10% on 1 July 2018 but this plan was paused in 2014 and the SG has been frozen at 9.5% since then.
Although the increase has been proposed since 2014, it comes at a time when many need to rebuild their super balance. Especially after the consequences of COVID-19 when many Aussies accessed their super early.
Industry Super Australia (ISA) has a calculator where you can put in your age, income, and super balance with the SG at 12%. Find out what difference that will make to your retirement.
How will the increase impact you?
There’s nothing you’ll need to do. The increase to your contributions will be automatic from 1 July. If you want to confirm it’s gone up you can check your pay slip after this date. Or simply login to Members Online and check your super balance.
The great news is it will mean more super for you over your working life, increasing the likelihood of a comfortable retirement. Often people focus their saving efforts on owning their own home, car, or raising children. Super is a great way to make sure there’s enough money left when you finish working once all these other priorities have been paid for.
People are also living longer as health care and living standards improve, so the more money in super you have, the more likely you’ll have enough money to last you for your whole retirement
If you’re looking for other ways to grow your super balance, you can contribute extra. Or you can speak to one of our experienced financial advisers at no extra cost.
Do you have questions about growing your super?
Speak to one of our experienced financial advisers at no extra cost to you.Request a callback
Advice about your super is included in your membership fee