Super is about to get a bit more super!

Superannuation Guarantee is going up but that doesn’t mean you should stop your own contributions.

From 1 July 2024 the standard super contribution rate is legislated to increase to a minimum of 11.50%. A win for all Australians who will build their retirement savings faster.

Your employer may choose to voluntarily pay a higher percentage.

Previously, QLD government and health employees were required to make additional "voluntary" 'standard member contributions' of 2-5%. This qualified employees to receive higher employer contributions up to 12.75% (or 18% for police officers).

You no longer need to make your own contribution to receive the higher employer contribution. But here is why I think you should continue to make your own contributions.

An example of a 30 year old who earns $100,000/year, has a super account worth $100,000 invested in a fund earning 7.5%p.a. on average would retire with a super balance at 65 of $766,448 if they cancelled their voluntary contributions. If they continued to make salary sacrifice contributions of 5%, they would retire with $990,412. A difference of $223,964!