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Superannuation increases?

There is a move to increase the basic super contribution rate for employers on behalf of their employees, taking it from 9% to 12% (in a few increments).

The Australian Institute of Superannuation Trustees, AIST, (and others I believe) have an online petition to show the Government the concept has the support of the general population.

Do you support it?

Maybe you haven’t even thought about it so here are a couple of my ideas on the topic:

  • an extra 3% of your salary each year has to give you a better chance of financial security in retirement so who would argue with getting it?
  • we’re often told we have an aging population so I have long thought I will need my own money (super or otherwise) as there may not be much of an age pension when I retire – again, more super from an employer has to help that!
  • an extra 3% on top of employee’s salaries could easily add up for any business owner so businesses may find the concept stressful, but
    • it isn’t immediate so businesses can prepare
    • if businesses have to increase prices to meet the 3%, living expenses will have another increase
    • base salaries (for new employees) may get reduced slightly so that packages aren’t significantly higher and that again may leave people financially tight in the present

From a purely super point of view, I totally agree with moving the minimum to 12%; from an overall perspective, I’m not so sure what is best and will need to read up on the potential impact – and I’d love to hear some different opinions from business owners, too.

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