IPSWICH workers will benefit from a boost to their nest egg this month as the super guarantee rate increases to 10.5 percent, another step on the way to 12 percent super.
An extra $312 a year will now flow into the super accounts of the typical worker.
Almost 300,000 lower-income workers, about 200,000 of whom are women, will be paid super on their wages for the first time with the removal of the $450 threshold.
This month also marks the 30th year of compulsory super, a landmark reform that has allowed millions of low to middle income Australians to save for an adequate retirement.
This year’s super boost may be small, but it will make a big difference to a Ipswich worker’s nest egg with a 30-year-old on the median wage expected to have an extra $22,000 at retirement.
The super rate is legislated to rise from 10 to 12 percent by 2025 by annual half a percent increases. The bipartisan commitment to 12 percent super, will deliver an extra $78,000 for the typical 30-year-old worker’s retirement.
The biggest benefactors of the July 1 increase are women, the young and those on lower incomes.
More women than men get the increase with 3.55 million women compared to 3.47 million men.
Almost 55 percent of the extra super payments will go to those under 40 and more people in their 20s will get a super boost than any other age bracket.
Two thirds of those benefitting from the increase earn less than $70,000 a year.
Now in its 30th year the Superannuation Guarantee is a critical response to the ageing population and improves retirement incomes of working people in a fiscally sustainable manner.
It has allowed millions of low to middle income earners to save for retirement.