An overwhelming majority of Australians support lifting the superannuation guarantee to 12% despite Reserve Bank modelling revealing that doing so will shrink wages growth.

Three in four Australians say they support increasing the super guarantee to 12%, according to a nationwide survey conducted by the Association of Superannuation Funds of Australia (ASFA).

Only 12% of the 1,375 people surveyed said they think the super guarantee rate should remain unchanged at 9.5%.

The superannuation guarantee is the minimum amount your employer has to take out of your earnings to contribute towards your super.

Currently, the rate is 9.5% of your base salary but is due to gradually increase to 12% by 2025.

The superannuation guarantee is a means of forced retirement savings and is designed to take pressure off the Age Pension, which the government pays to retirees who don’t have enough retirement savings to live off.

The survey found that 75% of Australians surveyed said they would struggle to live on the Age Pension alone, which is currently $24,551 per year for singles and $37,000 per year for couples.

ASFA CEO Martin Fahy said the findings of the survey show that most Australians agree that lifting the superannuation guarantee will be beneficial.

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