Millions of Australians are set to benefit from an increase in superannuation savings starting July 1, when the superannuation guarantee rises from 11.5% to 12% of an employee’s salary. This change marks the fifth and final adjustment in a series of increases that began in 2021. However, the Super Members Council has noted that many of the 12 million Australians affected by this change are unaware of it.
Misha Schubert, the chief executive of the Council, described the increase as a significant advancement in securing Australians’ financial futures, yet highlighted the lack of awareness surrounding the upcoming change. In response, the Council has launched a video initiative aimed at educating the public about superannuation and its implications for retirement savings.
Schubert emphasised that increasing knowledge of superannuation can significantly impact individuals’ engagement with their retirement planning. When Australians understand the importance of superannuation and how it functions, they are more inclined to take proactive steps such as comparing fees, exploring investment options, making extra contributions, and ensuring that their super contributions are complete.
In a related note, a tax will impact around 80,000 affluent Australians, representing about 0.5% of all superannuation account holders. This development further accentuates the need for greater awareness and understanding of superannuation policies and their benefits.
Overall, the upcoming rise in the superannuation guarantee presents a valuable opportunity for Australians to enhance their retirement savings, but this potential benefit hinges on their understanding and engagement with the superannuation system.