- The average worker will earn $21,000 in retirement
- Mandatory super payments increase
The average Australian will be $21,000 richer in retirement following changes to superannuation payments that come into effect from this month, new analysis reveals.
The Superannuation Guarantee, or the pension payment that employers must deposit into their employees’ superannuation funds each month, rose from 11 per cent to 11.5 per cent this month.
The Treasury Department estimates that the average worker earning $72,000 will save $21,000 in retirement because of this change.
The government is gradually increasing mandatory payments from 10 to 12 percent of income, with the 12 percent guarantee coming into effect from July 2025.
The average worker will pocket about $64,000 more in retirement after taking into account all the pension increases from 10 percent to 11.5 percent.
“Wage growth and tax cuts are putting money in people’s pockets now and our increase to the super guarantee will put money in people’s pockets for the future,” Treasurer Jim Chalmers said.
‘This will make a significant difference to millions of Australians who deserve a dignified retirement.
‘The pension guarantee has tripled under our government and this means an additional $64,000 at retirement for the average worker.’
The retirement payment that employers must deposit into employees’ retirement funds each month increased from 11 percent to 11.5 percent this month.
The average Australian worker earning $72,000 a year will save $21,000 in retirement thanks to the change
The Treasury estimates that part-time workers will also receive a boost to their savings thanks to the new guarantee.
A 35-year-old part-time store clerk is expected to pocket an additional $5,000 in retirement thanks to the 0.5 percent increase, from 11 percent to 11.5 percent.
Superannuation is designed to ensure Australians’ financial security in retirement and reduce pressure on pensions.
Prime Minister Paul Keating introduced the scheme in 1992.
“Labor built Australia’s superannuation system, we are proud of it and will always fight to strengthen it,” Chalmers said.
Federal Treasurer Jim Chalmers said the increase in superannuation funding would make a “significant difference” to retired Australians.