{"id":15689,"date":"2021-05-04T12:53:36","date_gmt":"2021-05-04T02:53:36","guid":{"rendered":"https:\/\/www.prosolution.com.au\/?p=15689"},"modified":"2021-05-04T12:57:38","modified_gmt":"2021-05-04T02:57:38","slug":"super-increase","status":"publish","type":"post","link":"https:\/\/wealthcoach.com.au\/stage\/super-increase\/","title":{"rendered":"How to make the most out of your super increase"},"content":{"rendered":"\n
\"Super<\/figure>\n\n\n\n

After 1 July this year, your employer must increase your super contributions from 9.5% to 10% of your salary<\/a>. This contribution rate will then increase by 0.5% p.a. for the subsequent 4 years until it reaches 12%. This could boost your retirement savings but only if you optimise two things.<\/p>\n\n\n\n

The government was tempted to delay this increase<\/h3>\n\n\n\n

It has been reported that the government was contemplating delaying increasing the Superannuation Guarantee Charge (SGC). The increase in SGC was proposed by the Gillard government back in 2012 but it was subsequently delayed until 1 July 2021. The Morrison government was probably concerned about whether businesses could afford higher employment costs during a pandemic. In addition, some commentators have suggested it would deter higher wage growth because any possibility for wage increases would be thwarted by higher superannuation costs.<\/p>\n\n\n\n

In my opinion, not delaying the super increase is the right decision. The underlying economy is recovering better than expected. And an increase in wage inflation in the short term is probably unlikely anyway for a variety of reasons. Forcing people to increase the amount they save for their future retirement is a good thing for them personally and the country as a whole.<\/p>\n\n\n\n