According to data commissioned by one of Australia’s largest superannuation funds, Australian Retirement Trust (ART), 71% of Australians don’t know that the current Super Guarantee (SG) rate is 10.5%.
The survey of more than 2,000 Australians, run by YouGov, also found that men are more likely than women to correctly cite the current SG rate (35% compared to 24%) and Gen Z are the generation most likely to be unsure (29% compared to Millennials: 17%, Gen X: 22% and Baby Boomers: 19%).
Australian Retirement Trust Chief Executive Officer, Bernard Reilly said that with the SG rate increasing to 11% from 1 July 2023, it’s important for Australians to take notice of their superannuation and make active choices when it comes to investing in their retirement.
“It’s important to remember that the 10.5% p.a. your employer pays into your superannuation is your money, to help you retire well, with confidence,” said Mr Reilly.
“Super is the largest and longest-term asset most of us will have and when it comes to engaging with your super fund, the sooner the better. Think of it as an investment in your future – you want to make every dollar count. As I say to my kids, do something today that your future self will thank you for.
“These survey results suggest Australians don’t know enough about their super, and as we see the SG rate increasing to 11% on 1 July, it’s important to take note of where your super is going and how it’s working for you.
“There are some simple steps you can take now that won’t cost a cent, and can make a huge difference to you in retirement:
- Review your super fund, including investment performance and fees, to check if it’s still right for you.
- Make sure you know where your super is and if you have multiple accounts consider consolidating them to save on fees.
- Consider if your super is invested in the right way for your stage of life. If you haven’t made an investment choice your super will be defaulted into your fund’s balanced option, which might not be the best option for you depending on your age, risk profile and how long you have until retirement.
“With the announcement of payday super it’s never been more important to make your hard-earned dollars work for you.”
From 1 July 2023, the SG rate is increasing from 10.5% to 11% and by 1 July 2025, it will increase to 12%.