Super often gets bad press. That might be from media pundits who expect rolled gold returns year in and year out despite market ups and downs. Or it could come from account holders themselves who find the need to understand the extensive rules very challenging.
That’s understandable, but this is why it is useful to take a step back and consider the many aspects of the Australian superannuation system that make it the envy of most developed nations across the globe.
Compulsory super was introduced by the Keating Government in 1992 with initial employer contributions of 3%. Whilst some in industry predicted that this ‘largesse’ would cause the sky to fall in, it didn’t. Compulsory contributions (now known as the Super Guarantee or SG) have reached 11.5% as of 1 July this year. Consequently, a majority of Australians have a significant nest egg as they head into retirement. Those aged between 65 and 69, hold median amounts of $213,986 for men and $201,233 for women.
