Australians are prioritising putting extra money into super, even as global economic conditions worsen, research shows.
A survey conducted by Equip Super analysed the investment habits of more than 2000 Australians and found almost half (46 per cent) were making extra post-tax contributions to their super.
The results show Aussies are prioritising making extra super contributions ahead of setting that money aside to cover rising living costs.
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Of those making extra contributions, around two thirds began making contributions before they turned 40, showing many are taking retirement planning seriously.
The results also showed a shift in attitudes towards superannuation and retirement following the pandemic.
Almost two in five (39 per cent) said they considered their super more important now than before the pandemic and almost a third (31 per cent) said they think about their retirement often.
Younger people (18 to 34) were found to value their superannuation more than their older counterparts, with 47 per cent of this age group viewing superannuation as more important now than they did two years ago, compared to only 30 per cent of those aged 55 and over.
Read: Think you have enough super? Think again
Equip Super CEO Scott Cameron says it’s heartening to see so many people focused on their future.
“It’s fantastic to see more and more Australians taking an interest in their financial future, and taking action to boost their superannuation early on in their working life,” he says.
“It’s easy to dismiss retirement planning as something to consider after other major life milestones, such as embarking on a career, starting a family or purchasing a property.
“But the reality is retirement planning should begin early in your career and be revisited throughout your life.”
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It’s also possible for some people to make extra contributions to their super above what their employer is contributing from their pre-tax pay, a practice known as salary sacrificing.
These contributions are taxed at a much lower rate of 15 per cent, meaning as this money is removed from your pay and taxed on the lower rate before income tax is applied, it will reduce the overall amount of income tax you pay on your wages while simultaneously building your nest egg.
Unfortunately, as the actual administration of the funds is handled by your employer, salary sacrificing needs to be offered by the business as a perk in order for you to use it.
Do you make extra contributions to your super? Does your employer offer salary sacrificing? Let us know in the comments section below.
