Twenty years of the superannuation guarantee: The verdict

Abstract

The Superannuation Guarantee scheme has markedly increased retirement savings held in superannuation. The perceived increase in wealth from SG contributions, growing superannuation balances and rising house prices have persuaded people to use debt to fund a higher current living standard. This was not an objective when Australia’s retirement savings policy was developed. It is now 20 years since the SG was introduced, and superannuation savings minus household debt effectively equals zero.