However, most consider superannuation crucial to future financial security
Just over half of Australians are currently facing financial difficulties, according to research commissioned by the Super Members Council. However, despite these challenges, most Australians still consider their superannuation as a crucial element for their future financial security.
The survey, conducted by Essential Research, found that 53% of respondents reported experiencing some degree of financial pressure, according to a report by The Australian. This figure consistently remained high throughout 2023 and represents an increase from 39% in mid-2022.
Among the respondents, a third felt financially secure and had spare money for savings or luxuries, while 13% described their financial position as comfortable without concerns about paying bills, The Australian reported.
The largest group, comprising 39% of survey participants, stated that they were "struggling a bit" and had to carefully manage their budgets to cover all their expenses. Another 14% described themselves as being in serious financial difficulty, with regular concerns about paying bills.
Despite these financial challenges, superannuation was viewed by many Australians as a lifeboat in turbulent economic times, The Australian reported. The survey revealed that 58% of respondents agreed that their superannuation gave them confidence about their financial well-being. Among those experiencing financial difficulty, 54% stated that their superannuation provided them with confidence about their financial situation.
Read next: Court slaps super trustee with $5m penalty
The Super Members Council's executive general manager of advocacy, Georgia Brumby, emphasised the importance of stability in superannuation policy to ensure the best outcomes for all Australians in retirement.
“More Australians are feeling the economic pinch right now, but super is seen as a lifeboat through today’s economic turbulent waters,” she told The Australian.
Calls for structural changes and gender equity
While superannuation is seen as a crucial aspect of retirement planning, there is a recognition that more significant, long-term structural changes are needed to make the system fairer, The Australian reported.
Brumby highlighted the risk of certain groups, such as women and those in lower-paid or less secure employment, falling through the gaps.
“Bigger, longer-term structural change is needed to make the system fairer,” she told The Australian. “Paying super on the Commonwealth Parental Leave Pay scheme is a small but immediate step the federal government could take to improve gender equity and women’s retirement outcomes – and we urge the government to deliver this in its upcoming budget.”
Importance of checking superannuation
The Super Members Council also encouraged individuals to regularly check on their superannuation during the summer months.
“Previous research shows those who take an interest in super are happier with their fund’s investment performance, so we would urge all Australians to check in with their fund to make sure they are getting the most they can from their super,” Brumby told The Australian.
The council provided tips for individuals, including consolidating super funds into one account, ensuring they receive all their legal entitlements, choosing top-performing funds in terms of investment returns after fees, and making extra contributions if financially able to do so.
Have something to say about this story? Let us know in the comments below.
