Australians have overwhelmingly rejected a push by a group of minority backbenchers to freeze the superannuation guarantee at 9.5 per cent, new research has revealed.
New research conducted by UMR confirms the strong support for an increase in super contributions, with 87 per cent of people surveyed in favour of increasing the super guarantee above its current level of 9.5 per cent.
Just 19 per cent, or one in five Australians, with superannuation said they expected to be able to live comfortably off their super in retirement, with a majority saying they would either need to work longer to have enough money to retire, or rely on the pension if super contributions didn't increase.
The increased reliance on the pension as a result of freezing super contributions was a big concern, with two-thirds of people surveyed (66 per cent) worried that everyone would end up footing the bill because the government will have to support more people on the pension.
More than half of those surveyed (55 per cent) also agreed that in a low wage growth environment, increasing super contributions was a good way to give workers an increase in overall remuneration – particularly when there is no guarantee employers would pass any increase back to workers if the super guarantee was frozen.
Despite attempts by some to undermine Australia's superannuation system, nearly 70 per cent of Australians backed the system as a safety net, like Medicare, that provides an essential service to those who need it.
The results also shone a light on the anxiety many Australians feel about the future, with 43 per cent expecting to retire with under $200,000 in their super account.
Industry Super Australia analysis shows that if the super guarantee was frozen at 9.5 per cent, a 30 year old male earning $85,000 a year would stand to lose $147,000 from their super by the time they reach retirement. That's the equivalent of nearly $5,500 extra a year in retirement.
If he and his wife have children, she will likely take time out of the workforce, and could lose up to $93,000. Together they could lose $240,000.
Australians will either need to work longer to make up that shortfall, or increase their reliance on the pension – at a cost to every taxpayer. It is easy to see the damage a freeze will do to people's quality of life in retirement. The UMR results can be viewed here
