Millions of Australians to get a major cash boost from next month
Millions of Aussies will receive a boost to their superannuation which could mean the average 30-year-old worker will retire with an extra $22,000 in the bank.
Nearly 10 million Australians will get the automatic boost to their super from July 1, according to the Super Members Council.
The superannuation guarantee rate will rise from 11.5 per cent to 12 per cent, which the SMC said equated to an extra $317 in super each year for the average person.
The rise, along with the increase from nine per cent to 12 per cent in the past decade, could mean an extra $132,000 in super for young Australians by the time they retire.
The majority of Aussies receiving the super increase are under 40 and nearly a third are earning less than $50,000 per year, while 70 per cent are making less than $100,000.
SMC CEO Misha Schubert told Daily Mail Australia the increase is a 'game changer' for average Aussie workers.
'It will help people have that dignified standard of living in retirement that all of us would hope for so let's celebrate that milestone now,' she said.
'Australia has a remarkable system that is the envy of the world in how we help our workforce save for retirement.'
Ms Schubert said there currently wasn't a 'discussion' to increase the super guarantee beyond 12 per cent.
'When you know that a 30-year-old today will be more than $130,000 better off in retirement, it underlines why the safeguards that protect super for retirement are so important for all Australians,' she said.
In 1991, Australia passed federal legislation that created the universal compulsory super system.
The superannuation guarantee act started by having employers pay three per cent into employees' super accounts.
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