"Contributing more super to secure my future": Australians are prioritising super amid rising costs of living and economic uncertainty - Equip

30 Nov 2022 9:15 AM

New data shows that investing extra money into superannuation is becoming the new norm for Australians.

 

A survey of more than 2,000 Australians, conducted earlier this year by Equip Super, found that they are beginning to invest more in their super well ahead of their retirement. Nearly one in two (46 per cent) have made voluntary contributions to top up their super over their working life, with around two thirds (65 per cent) first making voluntary contributions before turning 40.

 

After COVID, with inflation becoming front of mind for many and increasing global economic uncertainty, Australians are reassessing the importance of superannuation as a way to safeguard their future.

 

The survey also proved that retirement is no longer back of mind for many Australians. Equip found that nearly two in five (39 per cent) Australians consider their super more important now than prior to the COVID pandemic, with around a third (31 per cent) saying they think about their retirement plans often.

 

Although they are many years away from reaping the benefits of super, young people (18 to 34 year olds) were found to value their superannuation even more highly than their older counterparts, with 47 per cent of this age group viewing superannuation as more important now than they did two years ago, compared to only 30 per cent of those aged 55 and over.

 

“Australians are seeking stability for their future, including their retirement plans, even if they’re many years away. Making extra contributions to your super is a great way to build towards the retirement you want,” said Scott Cameron, Equip CEO.

 

This couldn’t ring more true for Queensland-based laboratory technician, Claudette Younger. Claudette, who turns 62 this year, has her eyes set on “demolishing” her home loan before retirement - while ramping up efforts to build her and her husband’s super.

 

“My husband and I have both turned 60 and are looking to retire in the next couple of years, and have realised it’s time to ensure we’re set up properly for retirement,” said Claudette.

 

“We’ve both been on relatively good salaries for many years, and I’ve been making salary sacrifices to my super for most of my career. My employer offered that option when I started the job, which I think more workplaces ought to do. But, like many people, my husband has never made contributions on top of his employer’s.

 

“We spoke to a financial planner at Equip who has been a tremendous help in setting up everything we need to pay off our home loan and build our super before we ‘hang up our boots’.

 

“My husband now has a plan in place to make voluntary contributions to his super in a way that is beneficial taxwise. We both feel so much more in control and excited about retirement now.”

 

Voluntary contributions allow Australians to invest extra money into their superannuation, where it can build their savings across their career to ultimately support their retirement. The benefit of super can be the compound interest which accrues over the longer term, with earlier contributions having a substantial impact.

 

Australians can also pay less tax on contributions made directly from their wage before tax (salary sacrificing). As salary sacrifice contributions are only taxed at 15%, this can provide valuable savings on tax while building super balances.

 

Mr Cameron added: “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.

 

“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.

 

“We have a commitment to equip our members with knowledge and tools today to prepare them for whatever tomorrow brings. Equip offers personalised advice tailored to each of our members, to ensure they get the best outcome for their super,” Mr Cameron concluded.

 

 

About us:

About Equip
Equip manages $32 billion for over 140,000 members across both Equip and Catholic Super. Equip is a leader in the superannuation industry in bringing funds together through successful successor fund transfers and continues to look for new opportunities to grow the fund. Equip’s strategic objective is to manage $50B for 300,000 members.  

 

Across Equip and Catholic Super we service employers and members from the energy, resources, water, infrastructure, manufacturing, education, health, legal and services sectors. Equip is a hybrid fund, operating both defined benefit, accumulation and pension plans. Our key objective is to deliver the best retirement outcome possible for our members, while operating as a trusted partner for our participating employers.

 

Issued by: Togethr Trustees Pty Ltd (ABN 64 006 964 049, AFSL 246383) the trustee of the Equipsuper Superannuation Fund (ABN 33 813 823 017) (“the Fund”). This is general information only and does not take into account your personal investment objectives, financial situation or needs. Please read the appropriate Product Disclosure Statement and Target Market Determination before making an investment decision. Investment returns are not guaranteed and past performance is not a reliable indicator of future performance. Financial advice services may be provided to members by the trustee’s related entity Togethr Financial Planning Pty Ltd (ABN 84 124 491 078; AFSL 455010).

Contact details:

equip@iconagency.com.au

Images: