Co-contribution payments down in June quarter
Take-up of the Government's co-contribution scheme for low income earners fell sharply in the June quarter of 2011 compared to the same period in 2010, according the latest Australian Prudential Regulation Authority (APRA) data.
Spouse contributions and co-contributions for the June quarter of 2011 were $164 million, representing a 40 per cent drop from the $274 million figure for the June quarter of 2010, according to APRA.
Australian Institute of Superannuation Trustees (AIST) chief executive Fiona Reynolds said the co-contributions scheme was an excellent deal for Australians who were saving for their retirement, adding that it was a pity to see it going to waste.
"There aren't many investments where the Government matches your contribution dollar for dollar," she said.
AIST research has found that the co-contributions scheme - which could mean as much as an extra $85,000 in retirement - is especially popular among older women, who typically have lower superannuation balances.
Reynolds also pointed to the importance of addressing the gender gap in superannuation.
"The average superannuation balance for women is less than half that of men," Reynolds said. "Women earn, on average, 17 per cent less than their male counterparts, which has a detrimental effect on their ability to save," Reynolds said.
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