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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 at Money Management and Super Review, with a focus on financial advice, investments, funds management, and superannuation. 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.
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