Survey shows Aussie super habits

A new survey conducted by online comparison site, Finder, has found only 14 per cent of respondents make regular contributions to their fund above employer contributions through salary sacrifice arrangements.

The poll results from 772 Australian respondents who have super showed only five per cent have made one one-off contribution, 14 per cent have made a few one-off contributions, 21 per cent haven’t made any but plan to and nearly half (46 per cent) have no plans to add to their retirement savings.

Those who belong to Generation X were found to be the most likely to make monthly contributions to their super (17 per cent), while 39 per cent of Generation Z said they plan to make arrange a salary sacrifice in the future.

“The start of the financial year often comes with a pay bump for many employees, which can be the trigger to start salary sacrificing their extra earnings,” Alison Banney, superannuation expert at Finder, said.

This comes after the Consumer Price Index rose by 6.1 per cent in the 12 months to July 2022.

“This year, Aussies are dealing with extra cost of living pressures and poor 1-year returns which can make it tempting to pocket the extra cash instead.

“If you can afford it, sacrificing even just $100 or $200 each month will make a huge difference when it comes to retirement, thanks to compounding interest.

“While the recent share market drop is worrying for those who need to access their super now, it’s also an opportunity to continue investing through the downturn while stocks are cheaper.”

Finder’s survey also found nine per cent of respondents did not know the name of their fund provider, another nine per cent had not reviewed their fund’s performance in over a year and 11 per cent said they had never checked the performance of their fund.

“Australians are battling rising grocery bills, petrol costs and energy bills, so it’s understandable their super is not front of mind,” Banney said.

“That said, your super is essentially your ticket to retirement, so it’s worrying to see so many people not thinking about their financial future.”