Overwhelming support for 12% Super Guarantee rate by 2025

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There is “overwhelming” support for increasing the Super Guarantee rate to 12% by 2025, polling commissioned by the Association of Superannuation Funds of Australia (ASFA) has found.

The polling found 79.9% support (either ‘strongly support’ or ‘support’) for gradually increasing the Superannuation Guarantee rate from its current 9.5% to 12% by 2025 – the currently legislated timetable.

There was stronger support (90.1%) for the current 9.5% SG Rate.

The lowest level of support for a 12% SG rate was amongst those under 39 years of age, though this age group still had 75.3% support for the gradually increasing rate. The highest level of support was amongst people aged 39 to 53 – Generation X – with 84.7% support. Baby Boomers and Pre-Boomers had support around 81%.

While there was very low opposition to the current level of Super Guarantee, there was opposition amongst SMSF members to increasing the SG rate to 12%. 25.5% of SMSF members opposed a 12% SG rate by 2025, compared to 10.9% of Retail fund members and 6.9% of Industry fund members.

“The Australian compulsory superannuation system is one of the great successes of public policy in Australia and it receives strong support from the Australian community,” said ASFA CEO Dr Martin Fahy.

“Australians deserve to enjoy their retirement. To achieve that they will need compulsory superannuation so they have the capacity to spend well above what the Age Pension provides for retirees.”

The same research also found that when told the full amount of the age pension (around $36,400 for a couple) only 19.6% wanted to spend around that amount in retirement. 41.5% wanted to spend around the ASFA Comfortable Retirement Standard level of $61,000 for a couple. 38.9% wanted to spend more than the Comfortable standard. 67.6% of SMSF members were in this last category – the highest of any super fund type.

The research was conducted by CoreData, and is based on an online survey of a representative sample of 1,000 Australians.

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