Latest news with #AustralianRetirementTrust
Sky News AU
11 hours ago
- Business
- Sky News AU
About $125k nest egg bump for 30-year-old Aussie on average salary amid super hikes, Australian Retirement Trust shows
A 30-year-old Australian earning the average salary will be $125,000 better off by the time they retire under recent changes to superannuation launched over the past five years. This is the finding of Australian Retirement Trust (ART) which said the gradual increase of the mandatory superannuation contributions from 9.5 per cent in 2020 to 12 per cent from the start of July will contribute more than six figures into young Australians' super accounts. ART's executive general manager for advocacy and impact Anne Fuchs said a 30-year-old on $100,000 per year – the average salary in Australia – will reap massive benefits of the increases since 2020. "In a fortnightly pay statement, the increase in the superannuation guarantee rate may seem tiny,' Ms Fuchs said. 'But over a working lifetime, the magic of compound returns can turn those small increases into hundreds of thousands of dollars.' It comes as working Aussies will receive a 0.5 per cent super contribution bump from the start of the coming financial year. Mrs Fuchs likened the increase to 'reaching the summit of your own financial Everest' for many working Australians. 'Since the superannuation guarantee was introduced in 1992, it has become the cornerstone of Australia's retirement system – evolving from a modest three per cent contribution to a robust framework that provides you with meaningful savings for your future,' she said. 'An increase in superannuation contributions means you'll be adding that little bit extra to your super and over time, that really adds up.' The gradual super contribution changes from 9.5 per cent to 12 per cent was originally proposed under the Rudd government and enacted under former prime minister Scott Morrison. Other research from the Association of Superannuation Funds of Australia showed a 30-year-old worker earning $75,000 will be $20,000 better off due to the 0.5 per cent super change. The bump comes as Australia's $4.2 trillion super nest egg will grow from the fourth largest super pool in the world to the second over the coming decade. This is according to a report from the Super Members Council which showed Australia will surpass the United Kingdom's and Canada's pensions amid growth in Australia's superannuation guarantee scheme. Super Members Council CEO Misha Schubert lauded Australia's super system as the 'envy of the world'. 'Australia has the fastest growing super system globally – twice the rate of international peers,' Ms Schubert said. 'We're the only OECD country where spending on government-funded pension payments is falling and will continue to fall.'
Perth Now
14 hours ago
- Business
- Perth Now
Simple change making Aussies $125k better off
The average young Australian is tipped to be $125,000 better off in their retirement simply by staying in the workforce, a major superannuation fund reveals. Australian Retirement Trust says the rise in the superannuation guarantee over the last five years is 'good news' for Australian workers who will have more in their retirement nest egg. Under changes to the superannuation guarantee proposed by the Rudd government and enacted by the Morrison government, every working Aussies superannuation rate automatically went from 9.5 to 12.00 per cent. The changes were brought in incrementally, up 0.5 per cent a year, with the final change starting from July 1 2025. Australians tipped to be $125k better off when they retire. NewsWire / Nicholas Eagar Credit: NewsWire According to the Australian Retirement Trust this five year plan will now see a 30-year old earning $100,000 retire with an additional $125,000 when they finish up their careers. Australian retirement trust executive general manager for advocacy and impact, Anne Fuchs, said the boost to the SG rate is good news for all working Australians. 'This half per cent step may seem small, but for working Australians, it's like reaching the summit of your own financial Everest,' Mrs Fuchs said. 'Since the Superannuation Guarantee was introduced in 1992, it has become the cornerstone of Australia's retirement system – evolving from a modest 3 per cent contribution to a robust framework that provides you with meaningful savings for your future.' Separate research from the Association of Superannuation Funds said the increase from to 12 per cent will mean the median 30-year old worker making $75,000 a year will add about $20,000 to their superannuation balance by the time they retire. The ASFA predicts the average 30-year old worker will now achieve a comfortable retirement. NewsWire / John Appleyard Credit: News Corp Australia This $20,000 increase will mean the median 30-year old will retire with $610,000 in superannuation, above the $53,383 a year or $595,000 they would need for a comfortable retirement. Couples should fare even better. ASFA says a couple requires $73,875 a year or $690,000 combined in total to live comfortably in retirement using their super plus age pension top-ups. The major caveat to these figures for singles and couples is owning your own home by retirement. Check your superannuation rate While the rate of change might seem small, Australian Retirement Trust urges Aussies to check their superannuation rate. According to survey data by the super fund four out of every five Australians don't know how much they've put away for retirement, while only one in five can correctly identify the current superannuation guarantee. 'Whether you're just starting your career or nearing retirement, understanding these changes can help you make smarter financial decisions,' Ms Fuchs said. 'As we look towards our own retirement savings, we should also look towards ensuring the Superannuation Guarantee is fit-for-purpose as our nation ages and grows.
News.com.au
14 hours ago
- Business
- News.com.au
‘Good news': Australians tipped to be $125k better off in retirement
The average young Australian is tipped to be $125,000 better off in their retirement simply by staying in the workforce, a major superannuation fund reveals. Australian Retirement Trust says the rise in the superannuation guarantee over the last five years is 'good news' for Australian workers who will have more in their retirement nest egg. Under changes to the superannuation guarantee proposed by the Rudd government and enacted by the Morrison government, every working Aussies superannuation rate automatically went from 9.5 to 12.00 per cent. The changes were brought in incrementally, up 0.5 per cent a year, with the final change starting from July 1 2025. According to the Australian Retirement Trust this five year plan will now see a 30-year old earning $100,000 retire with an additional $125,000 when they finish up their careers. Australian retirement trust executive general manager for advocacy and impact, Anne Fuchs, said the boost to the SG rate is good news for all working Australians. 'This half per cent step may seem small, but for working Australians, it's like reaching the summit of your own financial Everest,' Mrs Fuchs said. 'Since the Superannuation Guarantee was introduced in 1992, it has become the cornerstone of Australia's retirement system – evolving from a modest 3 per cent contribution to a robust framework that provides you with meaningful savings for your future.' Separate research from the Association of Superannuation Funds said the increase from to 12 per cent will mean the median 30-year old worker making $75,000 a year will add about $20,000 to their superannuation balance by the time they retire. This $20,000 increase will mean the median 30-year old will retire with $610,000 in superannuation, above the $53,383 a year or $595,000 they would need for a comfortable retirement. Couples should fare even better. ASFA says a couple requires $73,875 a year or $690,000 combined in total to live comfortably in retirement using their super plus age pension top-ups. The major caveat to these figures for singles and couples is owning your own home by retirement. Check your superannuation rate While the rate of change might seem small, Australian Retirement Trust urges Aussies to check their superannuation rate. According to survey data by the super fund four out of every five Australians don't know how much they've put away for retirement, while only one in five can correctly identify the current superannuation guarantee. 'Whether you're just starting your career or nearing retirement, understanding these changes can help you make smarter financial decisions,' Ms Fuchs said. 'As we look towards our own retirement savings, we should also look towards ensuring the Superannuation Guarantee is fit-for-purpose as our nation ages and grows.
AU Financial Review
a day ago
- Business
- AU Financial Review
Financial Review reporter Lucas Baird wins Mid-Year Walkley Prize
The Australian Financial Review's superannuation reporter Lucas Baird has been awarded a Walkley Foundation Mid-Year Media Prize for revealing a cyberattack on some of the country's largest funds, including Australian Super and Australian Retirement Trust.
The Age
10-06-2025
- Business
- The Age
‘Persistent weaknesses': Why your super account security might not be up to scratch
The powerful financial regulator has warned there are key gaps in some super funds' defences against cyberattacks, ordering funds to assess their systems for protecting members against fraudsters trying to break into their accounts. Super giants AustralianSuper, Australian Retirement Trust, HostPlus, Rest, Insignia and Cbus were targeted earlier this year in co-ordinated cyberattacks, which put the security practices of super funds under the microscope. Ten AustralianSuper members had money stolen in the attacks, with a combined $750,000 transferred out of their accounts, which has since been reimbursed. Members of some other funds had their details fraudulently accessed. The enormous amount of money held in super has long been an attractive target for fraudsters, and on Tuesday, the Australian Prudential Regulation Authority (APRA) wrote to the chairs of super funds, warning that current controls were not always up to scratch. As a result, each APRA-regulated super fund must conduct a self-assessment of its information-security controls, in particular how the funds authenticate logins. Loading APRA said that at a minimum, funds should use 'multi-factor authentication' – a security measure requiring two proofs of identity to grant access, such as an SMS code as well as a password – for high-risk activities such as changing a member's details or making a withdrawal. If funds' controls were inadequate, they must tell APRA and assess if they have breached prudential standards. APRA could seek fines against funds through the courts in the case of major breaches. The attacks on the super funds, which occurred in March, used a practice known as 'credential stuffing', where hackers used stolen user names and passwords to try to break into accounts.
