Super contributions too low
Figures from super industry group ASFA and the Australian Institute of Superannuation Trustees have raised concerns that people won’t have enough money for a comfortable retirement with fewer than one in 10 Australians putting extra money into their superannuation.
The data shows that only one in four self-employed people put money into super and as little as four per cent of under-40s contribute.
At the same time, the latest MLC wealth behaviour survey shows that fewer than half, or 45 per cent, of 18-29 year olds intend sticking money into their super over the next three months.’
The survey found that young people, along with women, are least inclined to top up their super.
The latest data shows personal contributions plummeted in the June quarter.
Industry specialists say the latest political battles over superannuation might have put some put people off putting money in.
The Federal government last week introduced some legislation to make super more flexible and help low income earners but held off on its contentious changes that would limit wealthier savers –
AIST chief executive officerTom Garcia said people should focus on their long term super needs and not get distracted by short term political, economic and global issues.
He said people had to put in extra because the 9.5 per cent compulsory employer super payments would not be enough for many people to retire on at a time when people are living longer in their retirement.
“Contributing extra into super can make a real difference to living standards in retirement, and making extra personal contributions — either before or after-tax — will be an important strategy for many people,” Mr Garcia told news.com.au
by Leon Gettler, September 12th 2016
