Australians have been feeling the pinch of the high cost of living over the years.

That’s why many Aussies, especially seniors, look forward to any windfall that could alleviate any financial stress.

There’s big news on the horizon for retirees and seniors in the workforce, and it could mean more money in your pocket.

Starting Tuesday, 1 July, 12 million Australians will see an immediate boost to their retirement savings.

The latest increase in the superannuation guarantee would bring this increase.

The superannuation guarantee is the minimum percentage of your salary that your employer must pay into your super fund.

Senior Aussies to benefit from gradual superannuation change soon. Image Credit: Freepik

Currently, it sits at 11.5 per cent. However, come July, this percentage should jump up to 12 per cent.

While this could be a small change, these extra dollars could add to thousands more in your retirement nest egg.

This should be the fifth and final increase in a series of gradual boosts that started back in 2021.

The gradual boosts should help Australians retire with more financial security and peace of mind.

Yet, according to the Super Members Council, a lot of Aussies don’t know this change is coming!

If you’re still working and receiving super contributions from your employer, this change could put more money into your super account every pay cycle.

Over time, the magic of compound interest means this small percentage increase could make a big difference to your retirement plans.

‘This increase to people’s super is a powerful step forward for Australians’ financial futures,’ Misha Schubert, the chief executive of the Super Members Council, stated.

‘But too many people don’t yet know it’s happening.’

The Council released a video campaign to help spread the word and encouraged Aussies to get more engaged with their super.

The more seniors know about their super, the better off they could be.

Taking a few minutes to check your balance, compare fees, or even make extra contributions can have a significant impact down the track.

Other super changes you should know about

The changes do not stop there.

The federal government also introduced a concessional tax rate for super balances over $3 million.

The contentious rate should only affect about 80,000 high-wealth Australians.

While it’s business as usual for some Aussies, it’s a good reminder to keep an eye on any changes that might affect your retirement plans.

With the super guarantee rising soon, now’s the perfect time to give your super a health check.

Here are a few steps you can take:

• Check your super balance: Log in to your super fund’s website or app and see how you’re tracking.
• Compare fees and investment options: Not all super funds are created equal. Lower fees and better investment performance can mean more money for you.
• Consolidate your super: If you’ve had multiple jobs, you might have more than one super account. Combining them can save on fees and make things easier to manage.
• Consider making extra contributions: Even small, regular contributions can make a big difference over time, thanks to compound interest.
• Check for lost or unclaimed super: The Australian Taxation Office (ATO) can help you track down any super you might have forgotten about.

If you’re already retired and drawing down your super, this change won’t affect your current payments.

However, if you’re still working part-time, you’ll benefit from the higher employer contributions soon.

If you have any questions about your super or retirement planning, don’t hesitate to reach out to your fund or a trusted financial adviser.

Key Takeaways

• The superannuation guarantee will increase from 11.5 per cent to 12 per cent on 1 July, giving about 12 million Australians an immediate boost to their retirement savings.
• This was the final scheduled increase as part of a series of superannuation guarantee boosts that began in 2021.
• The Super Members Council stated many people are unaware of the upcoming change and has raised awareness so more Aussies could understand and engage with their super.
• Other changes from 1 July include a new concessional tax rate on super balances over $3 million.

Are you surprised by this change? Have you checked your super lately, or do you have tips for making the most of your retirement savings? We would love to hear your thoughts and opinions about this change, so please share them with us in the comments section below.

 

[Aquired Taste]

How do you contribute to superannuation if you are over 70 ? Answer: you don't. Its not allowed. Once again pensioners on the nose.

 

[novezar]

Just watch out that you super doesn't go over the $3M.
For if it does, "Whacko The Diddle 'O, as it'll go to Albo".

 

[peterort16]

I'm 72, retired and don't have any super left after paying off my mortage. Do I get any benefits from this?

 

[Ettyboo]

A wonderful windfall for millions of people at the expense of those who can least afford it. A lot of small businesses are struggling, and this increase will see some going under. Then, their employees will get no super, and our already overstressed Centrelink payments will increase once more. Who covers that, why the taxpayers.

 

[novezar]

I'm 72, retired and don't have any super left after paying off my mortage. Do I get any benefits from this?

At least you're out of your greatest debt.
Hope that you can get onto the aged pension without too much trouble.
Good luck to you.