Increase in superannuation guarantee rate forecast to boost retirement savings by $21,000

The average Australian will have about $21,000 more sitting in their nest egg by retirement following a change to superannuation contributions, according to new analysis.

The superannuation guarantee increased from 11 to 11.5 per cent this month, meaning the compulsory superannuation payments made by your employer have risen.

An average worker earning about $72,000 would pocket an extra $21,000 at retirement as a result of the permanent 0.5 percentage point increase, according to new analysis by the Treasury Department.

The government has been progressively bumping the super guarantee rate until it hits 12 per cent, which is set to come into effect from July 2025.

Considering all the rises from 10 per cent to 11.5 per cent, the average worker would gain an extra $64,000 at retirement.

“Wages growth and tax cuts are putting cash in people’s pockets now, and our increase to the super guarantee will put cash in people’s pockets for the future,” Treasurer Jim Chalmers said.

“This will make a meaningful difference for millions of Australians who deserve a dignified retirement.

“The superannuation guarantee has increased three times under our government.”

The concessional super contributions cap also increased on July 1, up from $27,500 to $30,000 per year.

This is the amount you can invest into your super each year without copping extra tax and includes employer payments.

The cap on after-tax super or non-concessional super contributions has also been increased from $110,000 to $120,000.