Australians between 18 and 35 years old could be doing more to maximise their super, but are limited by other priorities, according to research.
In a Virgin Money Super survey of over 1,000 Gen Z and Gen Y Australians, respondents believed they were either too far down the track or were focused on paying off other debts.
Some 60% said super was not their top financial priority at the moment.
“It’s this here and now thinking that prevents us from taking an interest in super,” noted Christopher Sozou, super general manager at Virgin Money Super.
“If you want to have a comfortable lifestyle in retirement, have some feeling of missing out (FOMO) with your super.
“Given living costs are increasing, you don’t need to be adding extra money either. You can simply focus on implementing the no-cost options that don’t impact your cashflow now and then introduce additional contributions later.
“For instance, if a 35-year-old earning an average salary were to implement just one no-cost strategy, such as combining multiple superannuation accounts, they could be an extra $12,7702 ahead by the time they retire at 65.”
Options people could utilise including combining multiple super accounts into one, choosing an appropriate investment strategy, making non-concessional or concessional contributions and obtaining financial advice.
Some Australians may well already be on track for a comfortable retirement, Sozou pointed out, but they lacked financial confidence or know-how to realise that.
He said: “According to our survey, over 83% of Australian couples believe they need over $150,000 per year to live a comfortable retirement, despite super industry modelling suggesting that $66,725 per year is adequate.”
Notably, the survey results came alongside findings that half of Australian baby boomers regretted not acting sooner to maximise their super.
“It’s never too soon to start planning for a better financial future,” Sozou added.
