Newspaper article News Mail Bundaberg Qld.

Shortfall Blow for Retirees

Newspaper article News Mail Bundaberg Qld.

Shortfall Blow for Retirees

Article excerpt

Byline: SOPHIE ELSWORTH

THE average Australian will be $19,000 worse off by the slowing of the compulsory superannuation guarantee (SG) which will not come into full force until 2025.

Under the Coalition Government, the superannuation guarantee - the percentage rate of compulsory superannuation contributions made by employers to employees - was frozen at 9.5% in 2014 and will not rise again until 2021 when it begins incremental rises of 0.5%.

It is not due to reach 12% until 2025 - six years behind its original date of July 2019.

The Association of Superannuation Funds of Australia's chief executive officer, Dr Martin Fahy, said the slowdown of the rise to 12% could end up costing Australians significantly.

"We recognise the fiscal imperatives that have caused it to be pushed out - there have been real trade-offs and global conditions that have made it difficult in terms of commodity prices and competing public policy priorities,'' he said. …

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