Save more to be ‘better off’
A package, which will encourage workers to save more for retirement and help reduce super fund member fees, was recently proposed by Financial Services and Superannuation Minister, Bill Shorten.
A package, which will encourage workers to save more for retirement and help reduce super fund member fees, was recently proposed by Financial Services and Superannuation Minister, Bill Shorten.
Mr Shorten released the final details of the government’s package last week, claiming retired people would be tens of thousands of dollars “better off” under a new structured superannuation sector.
According to Mr Shorten, under the package, a 30-year-old full-time employee earning $68,000 could reportedly have $40,000 more when he or she retirees.
He added a worker receiving $45,000 a year across the next 30 years of their working life could “reasonably expect” to have $26,000 extra.
The package, if approved, may link with the government’s plan to lift the superannuation guarantee paid by business from 9% to 12% of an individual’s salary.
The report also detailed plans of a low-cost default superannuation product called ‘MySuper’ to be rolled out. MySuper would make it mandatory for employers to contribute into a fund offering a MySuper product if employees have not already chosen their own fund.
Describing the reforms as the “grand final” to the government’s policy agenda, Mr Shorten said the proposal was built on an election promise.
“We want to see Australians achieve adequate retirement savings, so when they finish working, they are able to live a life of some decency and dignity,” Mr Shorten said.
