Improving living standards in retirement

Living comfortably in retirement

Australians are living longer in retirement. The Government's Stronger, Fairer, Simpler tax reforms will boost superannuation savings to allow for a better standard of living in retirement.

Workers will also benefit from reductions in fees and charges on their superannuation, and a more efficient superannuation system, as a result of the Government's Stronger Super reforms.

More superannuation for workers

8.4 million Australian workers will benefit from the superannuation guarantee rate progressively increasing from 9 to 12 per cent, from 1 July 2013 to 1 July 2019.

A 30 year old worker on average full time earnings will retire at age 67 with around $118,000 extra in superannuation.

The maximum age limit for the superannuation guarantee will be abolished, to increase incentives for workers aged 70 and over to remain in the workforce and further boost retirement savings.

Supporting low income Australians

Around 3.6 million workers earning up to $37,000 will get a boost of up to $500 to their superannuation savings from 1 July 2012. This reform will make superannuation concessions fairer by ensuring these low-paid workers effectively pay no

tax on their superannuation guarantee contributions.

Secure and Sustainable Pensions

Around 3.4 million pensioners have benefited from our 2009 pension reforms. These historic reforms increased the rate and improved the indexation arrangements of the pension.

Since 2009, the maximum rate of the pension has increased by $154 per fortnight for singles and $156 per fortnight for couples combined.

Full and part rate pensioners will receive further annual increases of $338 for singles and $255 each for couples to assist with the impact of the carbon price, beginning in May 2012.