Treble super contributions or suffer
Retirees who plan to rely solely on superannuation contributions funded through employer contributions will find themselves struggling to pay the bills, accounting group CPA Australia warned. CPA Australia said in its report, Superannuation: the Right Balance that most retirees would find their living standards severely curtailed. Living standards would drop in retirement by as much as 69 per cent for those relying solely on the 9 per cent compulsory employer super contribution. People on all incomes, singles, couples and two children families all would suffer a drop in living standards, the report said. CPA advised people to contribute 6 per cent of their salary via standard employee contributions, and to salary sacrifice a further 6 per cent, and to also convince their employer to increase the employer contribution to 15 per cent.