Superannuation funds have the responsibility to help young members leverage their contributions and female members to help close the gender gap, NGS Super believes.
NGS Super said it watches members’ behaviour and if a member does not make contributions for three months they contact them asking if their circumstances have changed.
NGS Super chief executive, Anthony Rodwell-Ball said campaigns were needed to increase members’ super.
“If a 30 year old female member has not made a contribution for a year and then comes back on half the contributions it doesn’t take much brain power to work out that she probably had a baby,” he said.
“Super funds need to write to that person and ask for a serious consideration from their member on salary sacrifice to make up the loss of contributions.
“Where appropriate we have campaigns aimed at employers to say ‘it makes a lot of sense as a benefit to your staff to give a three per cent pay increase, and to put half into super on the basis that they contribute half, and the other half goes into their hands’.”
He said while not all employers were inclined to do so many of them agreed on a dollar for dollar matching scheme.
“Then, over time members end up with very good balances because employers have been putting in extra contributions in to match their extra contributions. The more of that we can stimulate the better,” he said.
