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Under-35s prioritising super post-COVID
Young Australians are paying more attention to superannuation with almost half of 18-34 year old Australians seeing their super as more important now than the start of the pandemic.
A survey of more than 2,000 Australians commissioned by Equip found almost half of respondents had made voluntary super contributions, with as many as two in five starting before their 30s.
Examining the effect of the pandemic, almost a third of working Australians reported having more disposable income today than at the start of the pandemic, with 35% of those aged 18-34.
According to the report, young Australians were especially likely to start investing this money, with almost a third of under 35s investing in super or other investment products for the first time during COVID, and 28% planning to begin investing money into super in the near future.
Equip chief executive, Scott Cameron, said: “Young Australians are thinking about their financial plans much more than they have previously.
“It is encouraging to see that younger people are prioritising their finances, and seeing value in contributing more to their super early in their careers.”
However, a third of 18-34 year olds said they were oblivious to how much they had in their super accounts.
Georgia Woods, a 29-year-old customer relations officer from Melbourne, said she had been reviewing her super options after moving to a higher-paying job during the pandemic.
“The pandemic definitely made me think more about the future, and drove me to take control of my super. I recently reviewed my super options including insurance premiums, and consolidated my existing funds into one to reduce overall fees.
“The next step for me, once all my debt is paid off, will be making regular voluntary contributions, as this can pay off tremendously well long term. I’m considering waiting until my HECS (study) fees are repaid, and diverting the same amount to my super, so that the impact on my take-home pay is less noticeable,” said Woods.
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