Your retirement savings are getting a raise... with one big caveat

By Brad Buzzard · · 3 min read
Fact Checked
Coin stacks of increasing height, with percentage signs on top.

Get ready: your superannuation is about to receive what might be its last scheduled percentage boost for years. From next month your employer's Super Guarantee (SG) contribution hits the landmark 12%. 

With no further increases currently locked in by law beyond this 0.5% jump, this final SG hike to 12% means your choice of super fund just became even more important. Is your super fund up to the task?

How the 12% Super Guarantee impacts your pay

This boost affects your pay differently depending on your employment agreement:

  • Base salary + super. Great news, you’re getting a raise! Your super contributions will increase, giving your retirement savings an extra lift without reducing your take-home pay from this change.
  • Total package (super included). Heads up: if you’re on a package, this SG increase usually means more of your existing package value goes to super (unless your employer has preemptively agreed to eat the difference). Yes, this will likely mean less in your actual take-home paycheck. But look on the bright side: you’ll pay less tax on the bit going into super. 

It’s a good idea to check your contract to see how it affects you, and talk to your employer if there’s anything you need clarified.

Why this (potentially final) boost needs a top super fund

The super guarantee rate is unlikely to move past 12% for a while, so the stakes for your fund's performance get even higher. With larger contributions, the gap between what a top-performing, low-fee fund can achieve versus a mediocre one becomes much harder to miss. 

Consider the upcoming 12% super rate a welcome win. With this change naturally bringing super top of mind, it’s a great opportunity to secure another win: making sure your fund is set to truly maximise it. Ask yourself:

  • Are high fees eating into my contributions?
  • Is poor performance holding my super back compared to other funds?
  • Is my fund the right fit for my age and retirement goals?

If the answer is ‘no’ to any of these, now’s the time to find a fund that won’t undermine your hard earned contributions. 

So make sure this valuable (and potentially final) increase truly works for you by having your money in a competitive, high-performing fund. Switching is easier than you think.

Here are some funds we think deserve a look:

Aware super disclaimers:

^SuperRatings Fund Crediting Rate Survey, March 2025. Based on SR50 Growth (77-90) Index. Returns are after tax and investment management expenses but before the deduction of administration fees. Past performance is not an indicator of future performance.

^^Chant West Super Fund Fee Survey December 2024, High Growth [81-95% in growth assets] investment option index and $50,000 account balance. Fees and costs can vary from year to year. Past fees and costs are not a reliable indicator of future fees and costs. Fees and comparisons may differ for other investment options and account balances. Aware Super’s High Growth option as published in the Aware Super Future Saver PDS.

Superhero disclaimers:

#Low Fees - Findings based on Superhero’s analysis of SuperRatings’ Fee Report - October 2024, accessed 5 December 2024. Fees for Superhero Super’s Growth and High Growth investment options are in the top quartile based on Total Fees and compared against the SR50 Balanced (60-76) and SR50 High Growth (91-100) Indices respectively. Performance - Findings based on Superhero’s analysis of SuperRatings’ Fund Crediting Rate Survey – October 2024, accessed 5 December 2024. Based on Superhero Super’s Growth and High Growth options being in the top quartile for one year return across the SR50 Balanced (60-76) and SR50 High Growth (91-100) Indices respectively. Refer to the Superhero Super PDS and TMD for found at superhero.com.au/support/documents for more information.

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