Australians of all walks of life, including those who are self-employed, are being urged to pay closer attention to their superannuation, with many missing out on being $200,000 richer on retiring.
A study conducted by RaboDirect found less than a third of Australians make voluntary contributions to their super, but the benefits these contributions have can be vast.
The RaboDirect 2017 Financial Health Barometer found only 32 per cent of Australians make voluntary contributions to their superannuation fund, but that the gap between what people expect to have saved by retirement and what they’ll need has grown from $268,502 to $353,125.
“It’s concerning to see a large disparity between what Aussies expect to need to retire with versus what they’ll actually have,” said the company’s head, Bede Cronin.
“The report, and incoming changes to the super system, highlights a critical need for Aussies to take stock of their super and savings to plan for the future.”
Mr Cronin said voluntary contributions were an effective way to help bridge this gap, adding that 69 per cent of those who make such contributions are not only twice as likely to believe their superannuation can fund their retirement, but are on average $200,000 richer come retirement.
“It’s not about big life changes, but simple actions that will make a difference. For example, contributing an additional $20 a week to your super over 45 years can result in over $175,000 extra for your retirement,” he said.