Only one-third of superannuation fund members are making extra contributions to their funds and only one-fifth do so on a regular basis, according to research conducted by a financial product comparison website.
Finder stated that in a survey of 1015 people carried out in March, of which 717 people held superannuation accounts, only 34 per cent of the latter group reported they made extra contributions to their fund.
Of that group, only 20 per cent stated they made monthly contributions, while the remaining 14 per cent made irregular payments into their fund.
A similar amount of people (16 per cent) reported they used to make regular extra contributions into super and 26 per cent stated they may do so in the future, while a quarter stated they have never made an extra contribution into their fund.
Finder noted women were less likely to top up their super (25 per cent) compared to men (43 per cent), and if the overall non-contribution rate of 67 per cent was applied across the superannuation sector, it would be the equivalent to more than 10 million people.
Finder superannuation expert Alison Banney said there was a strong chance of people falling short financially when they retire as many were unaware of how much they will need to fund their retirement.
Banney pointed to data from the Association of Superannuation Funds of Australia (ASFA) that shows the median super balance for men aged 60 to 64 is $154,453 and $122,848 for women in the same age bracket.
She also noted ASFA’s Retirement Standard for the December quarter 2020 indicates couples aged around 65 living a comfortable retirement need to spend $62,562 a year and singles need to spend $44,224, and based on these figures, Finder analysis shows on average men can only live off their super for 3.5 years, while the average level of funds held by women only lasts 2.8 years.
ASFA also recently released its own research that found many retirees run out of superannuation before death and the number of retirees still holding super at the time of death has been overestimated.
