Majority of Australians failing to top up super
Only 14% of people with superannuation are making regular contributions to their super fund and missing out by failing to salary sacrifice, according to Finder.
The survey of 722 people found only one in five (19%) had made one-off contributions in the past.
Despite not making any contributions previously, one in five (21%) Aussies with super said they were planning to do so in the future. Nearly half (46%) said they had no intention of bulking up their balance.
Alison Banney, superannuation expert at Finder, said prioritising super early was the key to early retirement, and an especially important consideration during inflation.
Over the 12 months to July, the Consumer Price Index rose by 6.1%, with Treasurer Jim Chalmers predicting inflation to reach 7.75% by the end of the year.
"If you can afford it, sacrificing even just $100 or $200 each month will make a huge difference when it comes to retirement, thanks to compounding interest.
"While the recent share market drop is worrying for those who need to access their super now, it's also an opportunity to continue investing through the downturn while stocks are cheaper."
Gen X was the most likely to make monthly contributions to their super (17%), compared to 10% of Gen Z. More than a third of Gen Z (39%) said they planned to make a salary sacrifice in the future.
The survey also found one in 10 Australians with super (9%) did not know the name of their fund provider – equivalent to approximately 1.5 million people. Among Gen Z, that figure went up to one in six (16%).
In addition, 11% of super customers admitted they had never checked the performance of their fund and another 9% had not reviewed their fund’s performance in over a year.
Recommended for you
The fund has launched a new campaign after finding many older tradies have lacked confidence understanding entitlements and missed pension income.
Unions and the Opposition have raised fresh concerns about APRA and ASIC’s failures amid fallout from First Guardian and Shield.
UniSuper chief investment officer, John Pearce, has shared his thinking behind why the $158 billion superannuation fund is yet to invest in cryptocurrency.
A new report has highlighted regulatory settings restricting super funds and reducing potential retirement balances for millions of Australians.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
211.16 3 y p.a(%)
2
Loftus Peak Global Disruption Fund Hedged
121.06 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
72.47 3 y p.a(%)
4
Paradice Australian Mid Cap A
69.09 3 y p.a(%)
5
Smarter Money Long-Short Credit Investor USD
68.96 3 y p.a(%)
