Millions of Australians are about to get a boost to their super, but most are unaware the cash is headed for their nest egg.
The super guarantee rate rise means the rate employers pay into employees’ superannuation funds has increased from 11.5 per cent to 12 per cent as of today.
It will see an extra $317 in retirement fund contributions paid to the average Australian worker over the next financial year.
The 0.5 per cent increase means an average 30-year-old worker will retire with an additional $22,000 in their nest egg.
Super will now also be paid on Commonwealth Parental Leave Pay for the first time ever, benefitting millions of families across the country.
It means women on paid maternity leave will continue to get super contributions.
The change should help narrow the gender super gap by a quarter, which currently sits at about a $50,000 difference for Australians nearing retirement.
Super Members Council CEO Misha Schubert said most Australians are unaware of the boost they’re about to receive.
“The super guarantee rise and paid super on parental leave are important changes that will boost the retirement savings of millions of Australians, with women and young people the biggest winners,” Schubert said.
“The fact so many Australians are still unaware of these changes shows much more work needs to be done to make super front of mind for Australians of all ages, who could be missing out on more money in retirement simply because they haven’t checked in on their super for a while.”
Australians are being urged to learn more about their super to maximise their nest egg’s potential.
