Gen X and Y forego future retirement dollars
Failure to consolidate superannuation accounts or find lost super could be costing younger Australians thousands of dollars in future retirement savings, according to the Association of Superannuation Funds of Australia (ASFA).
The research revealed almost 50 per cent of Generation Y, and around 40 per cent of Generation X, had not "got around" to consolidating their superannuation accounts yet, with one in five reporting they do not know how to do so.
The survey also found one in five of Generation X and Y do not know if they possess lost or unclaimed super, with over 60 per cent reporting they had not heard of the Australian Tax Office's online SuperSeeker service.
ASFA chief executive Pauline Vamos said there was a perception for many people that the process of finding lost super or consolidating accounts was fraught with difficulties. However, the younger you are, the more you will benefit from making small changes to the way you manage your super, she said.
"While retirement may seem like a long way off for younger people, they are the ones who stand to benefit most from sorting their superannuation savings. With the effect of compound interest, every dollar you put into your superannuation before age 35 will be seven extra dollars you will have in retirement," said Vamos.
AUTHOR
Staff Writer
Recommended for you
Treasurer Jim Chalmers has handed down his third budget, outlining the government’s macroeconomic forecasts and changes to superannuation.
Online investment adviser and fund manager Stockspot has introduced Stockspot Super, Australia’s first 'ETF only' superannuation product. superannuation product.
ASIC has called on superannuation funds to improve their oversight of advice fee deductions following an investigation of 10 trustees that found $990 million was charged in one year.
With just 30 per cent of Australians knowing their superannuation balance to the nearest $1,000, Findex has emphasised the role of financial advice in addressing the critical super knowledge gap.
