POWERED BY MOMENTUM MEDIA
Voluntary super contributions up almost 30%
The analysis of close to one million superannuation members has found they are 27% more likely to make voluntary super contributions as the COVID pandemic triggered a greater engagement with super, according to AMP.
The year-on-year comparison showed that members contributed an extra $296 to their super over the three months to September, 2021, which could amount to an additional approximately $75,000 in retirement savings, if maintained.
At the same time, members who withdrew money as a part of the Government’s Early Release of Super (EROS) scheme were 14% more likely to make voluntary contributions to their super than they were pre-COVID.
Following this, those who were working in the retail industry were also restoring their EROS funds faster, the analysis revealed.
The study also found that additional voluntary contribution rates for women were growing 6% faster than men, but despite the increase in voluntary super contributions from EROS, their contribution rates continued to lag the average by 15%.
AMP’s head of technical strategy for superannuation, John Perri, said: “What is pleasing is that following the initial COVID period we have now seen higher-levels of engagement with super and members that participated in EROS seeking to restore their balances.
“It’s also encouraging to see more women making voluntary contributions and taking action with their super, and those working in retail, an industry hit hard by COVID.
“And hopefully, as the circumstances for those who’ve withdrawn super improve, they’ll be more aware of the importance of rebuilding their super and the ways they can do this.”
Recommended for you
The deputy governor has warned that, as super funds’ overseas assets grow and liquidity risks rise, they will need to expand their FX hedge books to manage currency exposure effectively.
Super funds have built on early financial year momentum, as growth funds deliver strong results driven by equities and resilient bonds.
The super fund has announced that Mark Rider will step down from his position of chief investment officer (CIO) after deciding to “semi-retire” from full-time work.
Rest has joined forces with alternative asset manager Blue Owl Capital, co-investing in a real estate trust, with the aim of capitalising on systemic changes in debt financing.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
76.97 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
76.46 3 y p.a(%)
3
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
51.13 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
45.15 3 y p.a(%)
5
Select Baker steel Gold Institutional
43.78 3 y p.a(%)
