A 25-year-old could lose more than $14,000 at retirement if they do not receive a one-off superannuation guarantee (SG) of $4,000, according to a super body.
The Association of Superannuation Funds of Australia (ASFA) said the loss of super impacts more heavily on younger Australians, who were not only missing out on the immediate amount but also its potential growth over the years until retirement.
ASFA chief executive, Dr Adrian Fahy, said lower-income earners were also affected as they would be reliant on their super savings to supplement the Age Pension in retirement.
“Estimates show that for a 25-year-old, a one-off loss of $4,000 in super could equate to a loss of more than $14,000 at retirement in today’s dollars. Australians who are facing more vulnerable circumstances and broken work patterns may endure multiple losses throughout their working life,” Fahy said.
“It is important to know what you are entitled to when it comes to SG so you are not missing out on a large sum in retirement.”
ASFA said those not receiving the SG should check their payslip, speak to their employer, contact their super fund, and lodge an enquiry with the Australian Taxation Office.
