Australian workers have been left out in the cold and are paying the price for the Coalition Government’s freeze on the Superannuation Guarantee, according to a new report.
“The Super Freeze: What You’ve Lost” report compiled by Per Capita established that the superannuation freeze, which locked employer contributions in at 9 ½ %, has cost the average worker over $4300 per annum in retirement savings since the freeze.
The report also underlines that the real median wage has hit the wall, falling from $56, 524 in 2014 to $55, 432 in 2020.
Stagnant wage growth and the frozen Super Guarantee is a nasty combination that is shrinking the net worth of retirement savings for Australian workers according to ACTU Assistant Secretary, Scott Connolly.
“The notion that cutting wages will inspire employers to suddenly boost their superannuation contributions or vice versa is pure fantasy.
“Too many Australians are starting to see their plans for a comfortable retirement after a lifetime of work being eroded by low wage growth and the Morrison government straight jacket on the Super Guarantee,” Mr Connolly said.
The ACTU’S submission to The Retirement Income Review that has been commissioned by the Federal Government will emphasise the need to raise the Super Guarantee to 12% and accelerate its growth to 15% for working women.
Mr Connolly said fighting for a stronger Superannuation guarantee was vital.
“Australian workers should expect the government to be their champion when it comes to enjoying a decent retirement. Working people have created a superannuation system that is the best in the world, and we won’t let it be nobbled by Scott Morrison and his government.”