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Lack of awareness around SG increase impact
Some 40% of employees are unsure if they will see a reduction in their wages as a result of the superannuation guarantee (SG) or if their employer will foot the bill.
According to a survey by CoreData Research, 40% said they were unsure about the increase from 9.5% to 10%, which came into force on 1 July, 2021, and 13% said they knew their salary would be lower. Some 43% said their take-home pay would remain the same.
The knowledge gap was greatest among those under 40 who said they were unaware there were changes to super in place.
The firm said this demonstrated a failure by employers and superannuation funds to keep people up to date with the changes as less than 10% said they had found out from their employers while 6.9% said they had found out from their super fund.
However, over half of survey respondents said they were happy with the SG increase and only 5.9% said they were unhappy.
Founder of CoreData, Andrew Inwood, said: “It will be a surprise for many. Around four-in-10 employees say they do not know about the 1 July SG changes at all, or say they know there are changes but do not know what those changes are.
“This issue is greatest among those aged under 40 where the greatest proportion of employees, around 30% say they do not know about the changes at all.”
AUTHOR
Laura Dew
Laura Dew is editor at Super Review. Prior to joining SR, she spent five years working at Investment Week in the UK covering asset and wealth management.
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