POWERED BY MOMENTUM MEDIA
Voluntary super contributions rising among young Australians
Amid economic uncertainty and rising costs, a growing number of Australians are prioritising their superannuation by investing extra money well before retirement.
An Equip Super survey found 65% of respondents made their first voluntary contributions before the age of 40.
The survey of over 2,000 Australians also found two in five Australians considered their super more important now than before the COVID-19 pandemic.
Almost half of young Australians between 18 and 34 years old appeared to value their super balance (47%) more than their older counterparts (30%).
Through voluntary contributions, they could build their savings before retirement while accruing compound interest in the long term.
According to Equip CEO, Scott Cameron, the results displayed how Australians were “seeking stability for their future.”
“It’s fantastic to see more and more Australians taking an interest in their financial future, and taking action to boost their superannuation early on in their working life. Any small contributions you can make now will add up, and support you when it comes time to retire. There’s no better time to start contributing than the present,” he stated.
Additionally, with salary sacrifice contributions only taxed at 15%, Australians paid less with contributions made directly from their wages before tax.
“It’s easy to dismiss retirement planning as something to consider after other major life milestones, such as embarking on a career, starting a family or purchasing a property. But the reality is retirement planning should begin early in your career and be revisited throughout your life,” Cameron added.
AUTHOR
Rhea Nath
Rhea L Nath is a journalist on Super Review and InvestorDaily, with a focus on funds management, superannuation, and institutional investment. Previously, she covered small business and entrepreneurship news at Dynamic Business and multicultural issues at Indian Link Media Group. In 2022, she was named Young Journalist of the Year at the NSW Premier’s Multicultural Communications Awards.
Recommended for you
The two funds have announced the signing of a non-binding MOU to explore a potential merger.
The board must shift its focus from managing inflation to stimulating the economy with the trimmed mean inflation figure edging closer to the 2.5 per cent target, economists have said.
ASIC chair Joe Longo says superannuation trustees must do more to protect members from misconduct and high-risk schemes.
Super fund mergers are rising, but poor planning during successor fund transfers has left members and employers exposed to serious risks.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom 465 Calder Road Calder
96.54 3 y p.a(%)
2
DomaCom DFS Mortgage
85.26 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
78.55 3 y p.a(%)
4
BetaShares Crypto Innovators ETF
50.39 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
47.50 3 y p.a(%)
