INVESTING

The majority of Aussies want the super guarantee to increase

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Around 75% of Australians want the superannuation guarantee to rise to 12%, according to a survey commissioned by the Association of Superannuation Funds of Australia (ASFA).

ASFA says 1375 Australians were surveyed in October by Utting Research about their views on superannuation, the Age Pension and standard of living expectations for retirement.

Respondents to the survey were asked whether they support the superannuation guarantee rising to 12% by 2025. The results were that 75% support the scheduled increase in the SG rate to 12%, while 12% said the rate should remain unchanged at 9.5% and 13% said they were unsure.

sg increase research

"Without question, Australians value their superannuation and they clearly support measures aimed at helping them to build the nest egg necessary to fund a dignified retirement in this country," says ASFA chief executive Martin Fahy.

In addition to the revelations about the SG, the results also found that 75% of respondents said that they would struggle to live on the Age Pension.

Currently the Age Pension is $24,551 a year for a single and $37,000 a year for a couple. Only 30% said they could have a comfortable lifestyle in retirement spending less than $50,000 a year.

"Australia's superannuation system enables Australians to retire with dignity. With the legislated increase of the SG to 12%, and as the superannuation system matures, we expect to see a greater proportion of retirees relying less on the Age Pension and more on their superannuation," Fahy says.

On ESG factors, the survey found that super members approve of funds being active on ESG issues. About 64% of those surveyed said they approved of more corporate governance.

A further 64% approve of funds taking action on climate change and 58% approve of funds increasing gender diversity.

This article first appeared on Financial Standard

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Eliza Bavin is a senior journalist at Financial Standard covering the wealth management sector, including financial advice, superannuation, life insurance and funds management. She has a Bachelor's degree in communications (journalism) from Charles Sturt University.
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