In a survey of more than 2,000 Australians, Equip found that 47% of 18-34 year old Aussies are making their financial future a priority through superannuation.
Almost half of the respondents have made voluntary contributions to their super with two-in-five (40%) doing so before their 30th birthday.
“Young Australians are thinking about their financial plans much more than they have previously,” Equip CEO Scott Cameron said.
“It is encouraging to see that younger people are prioritising their finances, and seeing value in contributing more to their super early in their careers.”
However, the survey also found a third were oblivious as to the balance of their superannuation.
How millennials and Gen Zs fared during COVID
The survey found 33% of all under 35s lost working hours during the pandemic, while one-in-seven lost their jobs.
However, 27% of Aussies emerged from the pandemic with more disposable income than before.
Twenty-nine per cent of under 35s invested in their super or other investment products during the midst of COVID while 28% plan to do so in the near future.
How to prepare your superannuation for the future
Young Australians are being advised to take charge of their future as early as possible by setting up extra payments towards their super.
“The past two years have been immensely difficult for young Australians so it’s not surprising there’s a trend towards taking measures to reduce ongoing financial stress in later life,” Mr Cameron said.
“Prioritising voluntary contributions from a young age is one way people can set themselves up for a more comfortable future.
“Even allocating just a small percentage of savings each month towards your super now can bring you a step closer to a comfortable, and possibly even early, retirement.”
The super contribution base rate increase set to jump to 10.5% on 1 July and 12% by 2025.
"It is never too early to start thinking and planning for long-term milestones such as retirement," Mr Cameron said.
COVID impacting the retirement status of older Australians
A new report from the University of South Australia found that the pandemic negatively affected the retirement status of older working Aussies.
The report of 1,500 older people also revealed 12.3% of those who were not yet retired were more likely to delay their full retirement and/or make early withdrawals from their super than those who were retired.
Nearly a third (31%) of older Australians feel insecure about their financial security.
Dr Braam Lowies, lead researcher at the university, said older working Australians need to consider improving their financial security before they retire.
“Older Australians are disproportionately vulnerable to the financial consequences of COVID-19 and as a society we need to recognise and address this,” Dr Lowies said.
“While many pre-retirees are uncertain about their financial situation, women are particularly at risk with nearly a quarter indicating that they felt worried about making mistakes relating to investments, and 20% saying that they felt nervous about planning financially for their retirement.”
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