Information For Employers

Taking the Escalator is easy

The Escalator Program is designed to overcome the barriers of inertia and loss aversion, and gives people simple choices. It was structured in the US by behavioural finance researchers and has been trialled successfully both in the US and here in Australia.

Members are asked to increase their voluntary superannuation contributions by either 1%, 2% or 3% each year, up to a maximum of 6% (in addition to the 9% SG contributions).

These increases are usually timed to coincide with pay increases which makes the impact on the person's budget barely noticeable.

And the contributions can come from either pre or post-tax income.

For example, Todd decided to join the Escalator Program and increase his contributions by 2% each year.

Even though he decided in March, the increase doesn't take effect until October, when his salary review is due to take effect.

His total super contributions increase each year by 2%, until the maximum of 6% is reached, then stays at that level.

Talk to your adviser to find out how you can take your employees on the Escalator.

Information For Employees

Step up to an easy retirement

When your budget is tight, it's hard to find a spare dollar to save for the future, and retirement is a staircase you don't want to climb right now.

Research shows that 56% of Australian workers don't think the 9% Superannuation Guarantee (SG) will be enough for them to retire on. Most of those surveyed think they should contribute 12% to 15% pa.

Well, why not just take the Escalator?
The Escalator Program gives you a smooth ride to an easier retirement. Automatic and gradual increases in your contributions will help take your superannuation up to another level.

How do I get on the Escalator?
First, your employer has to agree to opt in to the program. Talk to your payroll person to see if they have agreed to participate in Escalator. Once this is confirmed, you have three easy decisions to make...

1. Choose how much you would like to increase your contributions by. It can be 1%, 2% or 3% each year, up to a maximum of 6% (in addition to the 9% SG contributions)
2. Decide if contributions will be from pre-tax or post-tax income
3. Set a date you would like to start... say, after your next pay review, so it won't affect your current spending.

Then just fill in the application form included in the document above and hand it to your human resources or payroll department.