New super guarantee sets women up for $400k retirement boost
New research from superannuation fund, HESTA, has confirmed the new super guarantee rate of 12 per cent will boost the retirement savings of the next generation of working women by hundreds of thousands of dollars.
The modelling conducted by the super fund found that an average female HESTA member who commenced their career on 1 July and earned 12 per cent in super for their entire working life would retire with $712,000. This represents a boost of $411,000 compared to modelling of women who began working on 1 July 1976 and would retire at age 67 on 30 June this year, which also factored in compulsory super from 1992 and historical increases.
According to HESTA chief executive, Debby Blakey, the predictive research also factored in time out of the workforce to care for children and part-time work.
“The increase in the super guarantee to 12% marked another milestone for Australia’s world-class retirement system and has already started to benefit millions of working Australians. This modelling shows its clear value in helping more women retire with dignity into the future,” she said.
“Nearly 80% of HESTA’s more than one million members are women, working in typically lower-paid industries such as aged care and early childhood education. Many take time out of the workforce to care for children or loved ones, and this further impacts their ability to build adequate super balances.
“The modelling suggests women starting work today could retire with more than double the amount of super compared to female workers modelled to retire this year.”
The 0.5 per cent increase to super also commenced around the same time as super payments on Commonwealth Paid Parental Leave (PPL) were also approved by Parliament earlier this year.
“The lift to the super guarantee and paying super on Commonwealth Paid Parental Leave are fantastic steps to strengthen Australia’s retirement system, but there are still policy settings that disadvantage women and those earning lower wages,” Blakey said.
“These changes should be seen as the foundation for further progress on creating a fairer super system, not the end.”
I think these numbers are too low. Especially if you live in major cities. I try to ensure none of…
Are Interprac / Sequoia going to pay the 10’s of $$ millions in AFCA complaints ? Even after Macquarie &…
Always back self interest when a body is marketing a submission to the government
In other words the system is achieving what the government wanted to happen.
Every day I come on here it feels like it is just the SMC trying to lobby to make one…