COVID triggers voluntary super contributions to rise nearly 30%

An analysis of AMP's nearly one million superannuation members revealed a 28% spike in super contributions when compared to pre-pandemic levels.

This is equivalent to an extra $296 being contributed per quarter over the three months to September 2021 when compared to the same period in 2019.

AMP's research also revealed that if these contributions were maintained over a 40-year period, it would equal an extra $75,000 in retirement savings.

Of AMP's members, 27% said they are now more likely to make extra contributions to their super than they were prior to COVID.

Members who made withdrawals under the government's Early Release of Super (EROS) scheme are 14% more likely to make voluntary super contributions than they were before COVID.

Particularly, retail workers are restoring their EROS funds faster than any industry according to AMP's findings.

With this in mind, AMP reported that EROS participants are still lagging behind the wider population's contribution rates by 15%.

Women are leading the charge as concessional contributions from women are rising 6% faster than men after findings revealed the EROS widened the gender super gap.

AMP’s Head of Technical Strategy for Superannuation John Perri said that COVID has been a financial set-back for millions, particularly the financially vulnerable, which is why many withdrew from their super funds.

"What is pleasing is that following the initial COVID period we have now seen higher-levels of engagement with super and members that participated in EROS seeking to restore their balances," Mr Perri said.

"More Australians are accessing education resources and making active choices with their super through voluntary contributions when they’re able to."

AMP's online education content received 840,000 visits over the three months to September 2021 - a four-fold increase when compared to the same period in 2019.

"We know the sooner members engage with and understand the benefits of our world-class super system, the better chance they have of taking full advantage and improving their quality of life in later years," Mr Perri said.

"And hopefully, as the circumstances for those who’ve withdrawn super improve, they’ll be more aware of the importance of rebuilding their super and the ways they can do this."

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