Australians lax on super contributions

Super top ups slow

By Kate Kachor
Wed 09 Apr 2008

The hype surrounding super has calmed with Australians slow to top up their contributions, according to new data.

While a large proportion of Australians are keen to increase their superannuation contributions to 12 per cent there is little evidence many are doing so, new industry research has found.

In a survey by ING Australia, 83 per cent of respondents stated they wished to take more control of their super.

In addition, 56 per cent said they would consider salary sacrifice to top up their super to 12 per cent.

However, only 39 per cent said they would use their income tax cuts towards super, the survey found.

"While our research has found super members are interested and willing to consider additional super contributions, we've not seen that sentiment translate into action," ING employer super executive director Ross Bowden said.

"Our own modelling shows that an extra 3 per cent contribution on low balance account super can add at least $130,000 to the final super benefit."

The current 9 per cent superannuation guarantee does not provide Australians enough for a comfortable retirement, Bowden said.

"The community, Government and superannuation funds all agree that further contributions are beneficial and lead to substantially larger sums for retirement," he said.

"Another additional benefit of increased super contributions is the potential for a significant reductions in fees."

The ING findings were collected across 2006 and 2007 during on-going education research with its employer super members.

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