The Super Guarantee Hits 12%: What It Means for You
From July 2025, employers must contribute 12% of your wage into superannuation. It’s a major milestone in Australia’s retirement system – but what does it really mean for pre-retirees?
A Brief History
The Superannuation Guarantee (SG) started at just 3% in 1992. Over time, it has steadily increased to 11.5% in 2024 and will reach 12% in 2025.*
Why It Matters
Every extra 0.5% an employer contributes adds up significantly over decades. For example:
- A 50-year-old earning $90,000 a year will see about $6,000 more in super by retirement thanks to the increase from 11.5% to 12%.**
- For younger workers, the effect is far greater – tens of thousands more over their working life.
Who Benefits Most?
- Women and part-time workers: Helps narrow the gender super gap.
- Middle-income earners: Boost without hitting the Division 293 tax threshold.
Final Thought
The 12% SG is a win for all Australians. For pre-retirees, it’s a reminder that even small percentages can make a big difference to retirement security.
Want clarity about your retirement?
Book a free 90-minute Retirement Accelerator™ Strategy Session. It’s designed to help you answer the three big questions pre-retirees face: Will I have enough? When can I retire? And how can I make the best decisions in the years leading up to it?
Book today by calling (03) 9725 2533, emailing fpsupport@hendrie.com.au, or scheduling directly with Katie or Michael.
References
*Parliament of Australia. Superannuation Guarantee History, 2024.
** Treasury of Australia. Superannuation Guarantee: Retirement Income Modelling, 2024.
Disclaimer: This information is of a general nature only and does not constitute advice. It has been provided without taking account of your objectives, financial situation or needs. Because of this, we recommend you consider, with or without the assistance of a financial adviser, whether the information is appropriate in light of your particular needs and circumstances. Hendrie Financial Strategies is a corporate authorised representative of the Madison Financial Group Pty Ltd, Australian Financial Services License No 246679, ABN 36 002 459 001.
