A dollar of super is not a dollar saved

It’s wrong to conclude, as a new CPA report does, that nothing has been saved over 20 years of compulsory superannuation. But the contributions do have complex effects on household budgets.

Does compulsory superannuation increase saving? The answer to this question is less obvious than many people suppose.  A recent study prepared for CPA Australia, Twenty years of the superannuation guarantee: The verdict,’ claims that "nothing has been saved during the 20 years of compulsory superannuation contributions". This is an overstatement, for reasons discussed below, but the report is at least asking the right questions.

Employees receive compulsory superannuation contributions equal to 9.25 per cent of their gross earnings. Compulsory superannuation is designed to increase household saving for retirement and reduce future demands on the budget from the age pension.

{{content.question}}

Mastercard

{{ twilioFailed ? 'SMS Code Failed to Send…' : 'An SMS verification code has been sent ...' }}

Hi {{ user.FirstName }}

Looks like you have already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to complete your SMS verification

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device


Verify your mobile number to proceed...

Please check your mobile number below and press the Send Verification Code button. This will be used to complete your verification in the next step.

Please sign up for full access

Mastercard

Updating information

Please wait ...

Trial

Mastercard
{{ productPrice }} / day
( GST included )
Price $0
GST $0
Discount -{{productDiscount}}
TOTAL {{productPrice}}
  • Mastercard
  • Visa

Please click on the ACTIVATE button to finalise your membership

Mastercard

The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device


Register as a new member

(using a different email)

Related Articles