It won’t happen overnight… but it will happen

At the risk of stealing a shampoo slogan, this is pretty much the outcome of last month's announcement by the Government about the increase in super. And while I could go on about how it needs to be introduced sooner, or needs to be more, if we take the glass half full approach, it’s still great news for your super any way you look at it.

The Federal Budget change will see the increase of compulsory super contributions (the amount your employer must pay) from the current 9% to 12%. It will be phased in from 2013 until it gradually reaches 12% in 2020.

If you’re one of the lucky ones with plenty of time on your side, this will have the most significant impact. Some recent stats I saw from the Australian Superannuation Funds Association estimate that the impact on someone on an average wage for the next 40 years will see their estimated future retirement benefit rise from $349,538 to $466,051. That’s pretty good. 

Of course, if you’re like a lot of us and don’t have anywhere near that much time left in the workforce, it’s a reminder that you do need to regularly review how much will be enough for you to fund a comfortable retirement.  Call us at Quadrant if you need some help piecing this together – we’re here to help.