What workers really think about their super

YOUNG adults and lowincome earners have a clear message for those wanting to fiddle with Australia’s retirement saving rules: Leave our super alone.

Amid calls by some politicians to halt the rise of compulsory superannuation and let low-income workers take their super as extra income instead, a new survey suggests employees are savvier than many might think.

Only one-quarter would rather have the money now than in their super, according to the Essential Research survey commissioned by the Australian Institute of Superannuation Trustees.

And just one in 10 disagrees with the government policy to lift compulsory employer super payments from 9.5 per cent of wages to 12 per cent by 2025.

Independent think tank the Grattan Institute is against lifting the super guarantee to 12 per cent, as is a group of Coalition politicians.

And Liberal senator Andrew Bragg wants superannuation to be voluntary for workers earning less than $50,000 and to allow their employer contributions to be refunded. The Federal Government says it has no plans to change the 12 per cent target.

However, all facets of super are likely to be examined in the retirement income review currently under way.

Australian Institute of Superannuation Trustees CEO Eva Scheerlinck said the survey suggested a significant number of young workers and lowincome earners were worried about having enough money in retirement.

“There is no justification for excluding any worker from benefiting from 12 per cent super, but it is particularly important for people on low incomes, those working parttime or those who have taken time out of paid work as carers,” she said.

The age pension currently pays a maximum of $933.40 per fortnight to a single or $1407 a fortnight to a couple.

Every $5000 someone has in superannuation is enough to boost their retirement income by $200 a fortnight for a year.

Ms Scheerlinck said it was “farcical to assume” that workers would get a pay rise if compulsory super rises were frozen.

Wealth on Track principal Steve Greatrex said the idea of stopping super rises so employers could pay higher wages was “impractical”.

“The truth is a lot of employers won’t pay them more,” he said.

“At least if it’s in the superannuation system people have rights.

“We are a wealthy country and it’s a good way of sharing the wealth around more evenly,” he said.

Super fund fees have been under fire for being among the highest in the world, but Mr Greatrex said there was pressure from regulators to cut costs for members.

“We read about high-fee funds, but there’s a lot of funds out there that are competitive,” he said.