Compulsory super transforms lives
July 4th, 2022
One in ten members of First Super who joined the fund in 1992 currently have a balance greater than $295,000. And with some of these members as young as 47, some balances at retirement are expected to exceed $1 million.
On the 30th anniversary of the introduction of compulsory super payments on wages today, First Super CEO Bill Watson said the retirement income system was working as intended, giving workers a dignified retirement.
“Our members who have benefited from the payment of Super Guarantee contributions through industrial agreements over the last 30 years are going to be very well provided for in retirement,” Bill Watson said.
“Had those members been able to access their super throughout their working lives for housing or other reasons, their balances would look a lot more modest today.
“Compulsory superannuation is an economy-wide structural reform designed to transform peoples’ lives, providing of a dignified and comfortable retirement, while reducing future reliance on the aged pension.
“With the state of the economy and acute cost of living pressures, there has never been a more critical time to supplement the aged pension.
“The fact that so many people approaching the end of their working lives today are on track to be able to support themselves comfortably in retirement shows that the system is working as intended – and it is not yet fully matured.
“Over the next decade we will start to see the impact of workers retiring having received the Super Guarantee their entire working lives.
“For many millions of workers, this is going to be absolutely life-changing.
“Our challenge now is to ensure that the system works for everyone – particularly women who are most of the nation’s low wage workers, and who miss out on super when they take time out the workforce for caring responsibilities, as well as the nearly 10% of the workforce who miss out on super because they are contractors.”
First Super comes out of the furniture, pulp and paper and timber industries and now covers workers all around Australia.
Media contact: Rebecca Nicholson – 0409 216053