A new survey by the Association of Superannuation Funds of Australia (ASFA) has found super fund members overwhelmingly support compulsory superannuation for all self-employed workers.
In the 2023 ASFA Super Fund Member Survey of 395 respondents, 78 per cent supported all self-employed people being required to pay contributions.
When broken down by work type, 76 per cent said all self-employed people should be required, 17 per cent said no self-employed should, and 8 per cent said gig workers only.
“This survey confirms that Australians not only see the benefit of compulsory super for employees but consider that all working Australians should be covered,” said ASFA deputy chief executive Glen McCrea.
“While there is some capacity for the self-employed to contribute to superannuation, we know that around one-fifth of these workers have no super at all in retirement.
“Everyone deserves the potential for dignity in retirement, and that includes gig workers and the self-employed.”
Recent Industry Super Australia (ISA) research highlighted how the average gig worker could have up to $29,000 more in their retirement nest egg if super was paid to the on-demand workforce.
In total, gig workers missed out on some $400 million a year in super, ISA said.
McCrea observed: “The upcoming federal budget provides an opportunity to bring the self-employed and gig economy workers into the compulsory superannuation system. Along with essential workers, they helped get Australians through the pandemic by delivering food and other key items, and they deserve a decent retirement when the time comes.”
ASFA’s survey also found the majority (64 per cent) considered that they would need annual expenditure consistent with, or exceeding, the ASFA Comfortable Standard budgets to maintain their desired living standard in retirement. Similar results were reported between singles and couples.
In the 2022 December quarter, the Comfortable Standard annual budget for a single person to fund a comfortable standard of living in their post-work years was $49,462. Meanwhile, the figure stood at $69,691 for a couple.
“Australians’ expectations of retirement are clear; they want to be comfortable, and the move to 12 per cent SG (superannuation guarantee) over the next few years will help more people to achieve that,” McCrea said.
So ASFA asked people who aren’t self employed whether self employed people should have compulsory SG. Ironic at a time where we’re being told to vote for a Voice so people affected by legislation get a say and are heard.
For self employed people, their business is their super. They invest in their business so when they retire they can sell it and live off the proceeds. Putting money into super instead would result in some business failing and for others would impact daily living expenses.
I appreciate the current system isn’t perfect, but compulsory super for this group isn’t either. But don’t ask everyone else and then lobby Government. Ask the self employed. Give them a Voice, and listen to them.