Young Aussies who understand super six times more likely to take action to boost retirement savings

The Super Members Council (SMC) is urging Australians to use the holiday period to learn more about super, with research showing those who regularly check it are more likely to make decisions that improve their retirement savings and feel more confident about their future.

The recent survey found young Australians who better understand super are up to six times more likely to take actions that improve their retirement savings.

Analysis shows 8 out of 10 Australians say super will be critical to their retirement, while the number of people who feel they’ll have enough super for retirement has reached more than 50% for the first time.

There has also been an increase in confidence in the super system with 64% of Australians agreeing the system works well for them.

With the Super Guarantee rising to 12%, super balances are growing and that’s making more people feel more confident they will have enough super in retirement.

“The more you think about your super, the more likely you are to do something that could boost your savings and help you live the life you want in retirement,” says SMC Acting CEO Georgia Brumby.

“Super is a long-term investment – so the earlier you engage, the bigger the payoff.”

“This summer, don’t just soak up the sun—soak up your super. A little engagement now can make your retirement sizzle later.”

There are some simple steps members can take over the summer months to ensure they are getting the maximum benefit from super:

• Make sure you are being paid all your legal entitlements; Unpaid superannuation impacts one in four workers a year – costing them a total of $5 billion. Check with your super fund either via an app or contacting them directly to make sure you are being correctly paid.  
• Consolidate your super funds into one account; finding lost or unpaid super is now simple using the Australian Tax Office tools.  
• Make sure you are with a top performing super fund; Investment returns after fees are the most important metric in measuring performance. The ATO has a useful comparison tool for MySuper products.    
• If financially able to, consider making extra contributions to super; A 30-year-old on average wages that salary sacrifices $20 a week into super has $67,000 more at retirement and gets a tax saving now.  

Nearly three-quarters of today’s workers weren’t in the workforce more than 30 years ago when super was established – that’s why SMC is focused on educating young Australians about their super so they’re set up for the future.