However, some young people are heeding the warnings. Melbourne’s Erin Doyle, in her mid-30s, has been stashing away an extra $250 in superannuation in voluntary superannuation contributions for years.
Her workplace might pay her super regularly, but she’s convinced that she’s going to need more by the time she reaches retirement age. “I basically forget that I even earn it because I never even see it when I’m paid,” she says.
Mary Delahunty, chief executive of the Association of Superannuation Funds of Australia.
“From a very young age, my parents drilled into me that superannuation was critical, so it has just always been something I’ve done. I know it will eventually become a nest egg of funds that will allow me to go travelling and experience the world after I’ve worked all these years. Occasionally, I go and have a peek to see how much it’s grown, but otherwise I just leave it.”
The CEO of the Association of Superannuation Funds of Australia, Mary Delahunty, isn’t surprised that young people are worrying about their super.
“Young people saving today have many financial pressures. They’re wondering when their job will exist and whether their wages will keep up with inflation,” Delahunty says.
The retirement income standard has risen again this quarter. ASFA says couples will need $75,319 for a comfortable retirement, and $53,289 for singles. Delahunty attributes the cost growth to steep cost of living increases. The growing cost of private health insurance, electricity costs and groceries have also contributed to the jump.
Retirees are also spending $58 per week just on digital connectivity per week, with smartphones, streaming services and high-speed internet now standard budget items for older Australians.
“Given that the superannuation guarantee has risen to 12 per cent, a 30-year-old worker today can have confidence that their money in their superannuation account is on track for them to have a comfortable retirement,” Delahunty says.
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