Australian employers are contributing an extra $10 billion a year into the superannuation accounts of employees, on top of the legally required 9 per cent Superannuation Guarantee (SG).
Research by The Association of Superannuation Funds of Australia (ASFA) revealed that around 1.8 million Australians, approximately 23 per cent of all wage and salary earners, receive employer contributions above 9 per cent usually in the range of 10 to 12 per cent.
ASFA Chief Executive, Pauline Vamos said: “This demonstrates that there are employers who recognise that 9 per cent super is not enough to enable working Australians to fund an adequate retirement. It also demonstrates that there are employees who are prepared to forego wage increases in order to grow their superannuation nest egg.”
“A great many employers are going above and beyond the legal requirements to help their employees achieve dignity in retirement.”
Industries more likely to provide contributions above SG are those where the public sector dominates, as well as oil, mining, construction, banking and finance/investment industries.
Vamos added that ASFA had done extensive research showing that SG needs to be lifted to 12 per cent, through an increase in employer contributions and soft compulsion, “in order to give Australians the ability to fund the retirement lifestyle that they want and deserve.”