I had no idea where my lost super was or the names of the funds. I just new it was scattered everywhere and I should definitely have more than $3,000 in my super. Australian Super Finder found all 7 of my funds and now my balance is almost $50,000. Thank you so much for getting my super back on track. ? Leonie, Thomastown VIC

Super Facts and Tips

What the Freezing of Super Guarantee Means for You

For a 35-year old making $70,000 a year, this might mean $18,000 less in cost savings on retirement.

You can offset the modifications and protect your future by contributing extra money to superannuation now.

As part of a deal to reverse the mining tax, the Government has frozen super guarantee increases up until 2021, costing Australians around $128bn in lost superannuation savings.

What Has Changed?

The super guarantee contributions that the majority of Australian workers receive from their employers were set to increase by half a percent a year from 2014, approximately 12% of each employee's annual income by 2019.

But on September 2, 2014, the Federal Government announced that, as a result of its offer to ditch the Minerals Resource Lease Tax, those boosts will be postponed for seven years. Instead, superannuation guarantee contributions will be frozen at the existing rate of 9.5% of income up until 1 July 2021. After that, they will slowly increase to reach the target of 12% per year in 2025.

By doing something about it to boost your superannuation now, you can balance out the effects of the changes and make a favourable difference to your financial wellness during retirement.

What Does this Mean for You?

In other words, the changes mean less super for millions of Australians - around $128 billion less by 2025, according to the Financial Solutions Council. As a result, many will have a hard time to conserve enough for a comfortable way of life in retirement.

According to the Association of Super Funds of Australia, even with a super guarantee rate of 12% per year, a normal worker making $50,000 a year may expect to conserve around $244,000 over 30 years - just a little over half the $430,000 lump sum required for a comfortable retirement lifestyle, presuming a part pension. Now Australians can expect to save even less.

What Can You Do About It?

By taking action to increase your superannuation now, you can offset the results of the modifications and make a positive distinction to your financial wellness during retirement. For example, according to ASIC's MoneySmart Superannuation Calculator, the 45 years of age can increase their super balance on retirement by more than $56,000, merely by using wage sacrifice to improve their yearly contributions by another 3% of income each year, or around $212 a month.

More updates are posted on our site at www.australiansuperfinder.com.au

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