Voluntary super contributions up almost 30%
The analysis of close to one million superannuation members has found they are 27% more likely to make voluntary super contributions as the COVID pandemic triggered a greater engagement with super, according to AMP.
The year-on-year comparison showed that members contributed an extra $296 to their super over the three months to September, 2021, which could amount to an additional approximately $75,000 in retirement savings, if maintained.
At the same time, members who withdrew money as a part of the Government’s Early Release of Super (EROS) scheme were 14% more likely to make voluntary contributions to their super than they were pre-COVID.
Following this, those who were working in the retail industry were also restoring their EROS funds faster, the analysis revealed.
The study also found that additional voluntary contribution rates for women were growing 6% faster than men, but despite the increase in voluntary super contributions from EROS, their contribution rates continued to lag the average by 15%.
AMP’s head of technical strategy for superannuation, John Perri, said: “What is pleasing is that following the initial COVID period we have now seen higher-levels of engagement with super and members that participated in EROS seeking to restore their balances.
“It’s also encouraging to see more women making voluntary contributions and taking action with their super, and those working in retail, an industry hit hard by COVID.
“And hopefully, as the circumstances for those who’ve withdrawn super improve, they’ll be more aware of the importance of rebuilding their super and the ways they can do this.”
Recommended for you
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.
Underestimating the cost of insurance by almost $75,000 in a Statement of Advice is among multiple reasons that a relevant provider has faced action from the FSCP.
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
Former chair of the House of Representatives’ Standing Economics Committee, Tim Wilson, is planning a return to politics after losing his seat in the 2022 federal election.
