The Morrison Government seems intent on undermining financial outcomes for Australians in retirement given its latest superannuation proposal, the Australian Institute of Superannuation Trustees (AIST) believes.
Media outlets reported today that the Government was considering giving workers a choice of either putting more money into their super or having more take-home pay. This, the AIST said, would see the Government renege on the legislated timetable to increase the super guarantee (SG) from 9.5% to 12.5% by 2025.
AIST chief executive, Eva Scheerlinck, said: “Consumer research has repeatedly shown that Australians strongly support our compulsory super system rather than one which is opt-in. There is a broad understanding that unless we are compelled to save a portion of our wages, very few of us will have enough money for a financially secure retirement.
“Over the course of working life, an extra 2.5% of super savings could boost the average couple’s retirement nest egg by $200,000.
“There are lots of ways to deal with low wage growth but forcing people to use their retirement savings to fund their own pay rise shouldn’t be one of them.”
She noted that the COVID-19 early release of super scheme had already depleted many low income earner’s super savings and the SG increase would be the difference between a financially secure retirement or one just scraping by.