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.

Have your say...

sylvia | Monday, 19 March 2012, 11:16 AM
We are finding it tough enough to compete with imports and now the govt is adding a further 3% to the salary costs for business. Ask the average struggling worker if they want to put money into a managed fund that has been losing money, or use the money to pay off their mortgage and children costs? Ask the emaployers if the workers even consider the superannuation as part of their salary, even MYOB doesn't indicate it as part of the salary on the payslips, so the employer looks tight on the payrol but is in fact paying several thousand dollars into an unwanted savings account for the employee. Where is the ability to take responsibility for one's own life?
Peter | Monday, 19 March 2012, 9:19 PM
When will these bludgers of the business economy learn that businesses do not have an endless cashflow to support continued handouts. If you look at the types of idividuals that keep calling for handouts, you will see one thing in common; none of them actually add value and create jobs. All they do is continually endeavour to bleed business dry.
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