The Association of Superannuation Funds of Australia (ASFA) is calling on the Super Guarantee to be moved to 12 per cent as soon as possible, instead of waiting on the 2021 proposal.
Waiting for another two years, ASFA says, provides an opportunity to improve retirement savings. ASFA modelling shows the average income earner who is aged 30 today on a $70,000 salary, would have $71,600 less when retiring at age 67 if the superannuation guarantee stays at 9.5 per cent. Bringing forward the timetable by two years will improve their retirement by a substantial sum.
ASFA proposes other measures for the Government to consider, including:
Stabilising tax settings for superannuation over the course of the next parliament
Boosting superannuation balances of women and low-income earners
Lifting the bar for MySuper in order to deliver the best possible outcomes for fund members
Ensuring appropriate insurance in superannuation default arrangements are in place for Australians
Facilitating investment in affordable housing by superannuation funds
Providing SG for gig economy workers