FSC calls for the rise of super guarantee to 12 percent
The Financial Services Council has reiterated its call for an increase in Australia's superannuation guarantee to 12 per cent, saying the country's retirement savings would grow by $184 billion as a result.
Research completed by Rice Warner Actuaries showed the retirement savings gap would decline to $836 billion if the guarantee was raised from its current nine per cent to 12 per cent, the council said on Sunday that.
The gap is the difference between super savings and the savings needed to fund what the council believes is a comfortable lifestyle in retirement.
If the guarantee remained at nine per cent, the savings gap would top $1 trillion, said the council, which represents super funds, among others.
In a similar statement on November 22, 2010, council chief executive John Brogden said, "Parliament must support the rise to 12 per cent superannuation if Australians are to enjoy a comfortable retirement."
The council's renewed call comes a day before senators meet to vote on the federal government's minerals resource rent tax, which is intended to boost Australia's super savings.
Under the plan, its revenue would allow the super guarantee to rise gradually from July 1 next year to 12 per cent over eight years, from the current nine per cent.
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