5 July 2023
On 1 July 2023, the Superannuation Guarantee (SG) rate was increased once more by 0.5%. Your employer is now required to pay a minimum of 11% in to your super, either in addition to your salary or as part of your package, depending on your employment contract.
The SG rate will continue to rise for the next two years by 0.5% until it reaches 12% in 2025.
Although it may seem like a small amount, every additional dollar adds up to a better retirement in the longer term and helps to ensure you keep up with the costs to achieve comfortable retirement standard by age 67.
In May 2023, the Association of Superannuation Funds of Australia (ASFA) lifted its comfortable retirement standard of $70,482 per annum for couples, and $50,004 for single people¹. This latest rise took the annual increase in costs for retirement to 7.7%².
To keep your superannuation on track, the two obvious strategies are to increase your contributions and to ensure you are in the right performing fund according to your risk profile. The government mandated Super Guarantee rise is increasing your contributions, but we still recommend you make sure this is sufficient to realise your retirement dreams.
Now is the time to think about the 3 Cs:
If you are unsure of what to do, this is also a great time to invest in professional financial advice. We have recently increased options for members to access professional financial advice for your superannuation planning, where adviser fees can be paid directly from your super account.
Brighter Super is a Queensland not-for-profit fund with 259,000 members and $29 billion funds under management, and is one of Queensland’s largest non-government financial institutions.
This article provides general information only and does not consider your individual objectives, financial situation or needs. Before making decisions, read the Product Disclosure Statements (PDS) and Target Market Determination (TMD) at brightersuper.com.au/governance and consult with a financial adviser.
1. ASFA Retirement Standard March Quarter 2023, https://www.superannuation.asn.au/resources/retirement-standard
2. ASFA media Release 26 May 2023, https://www.superannuation.asn.au/media/media-releases/2023/release-26-may-2023