Young Australians missing out on superannuation

In the 2021/22 financial year, Australians missed out on over $5 billion inentitlements, with young Australians in their 20s losing the most.

This is according to a newfrom the peak body for members of industry superannuation funds, Super Members Council (SMC).

In 2021/22, the average person was underpaid $1,800 in super.

SMC is calling on the Federal Government to pass reforms to ensure Australians receive their entitlements.

Minority groups

The report found that women, young workers, low-income earners, and migrant employees are more likely to have unpaid or underpaid super.

SMC estimates that underpaying super can lead to over $30,000 less in savings at retirement age. It can also delay the age at which someone retires.

Nearly half of employees who earn less than $25,000 a year are missing out on super entitlements. Almost a third of employees earning from $25,000 to $50,000 a year have been underpaid super.

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Age and gender

Over 30% of young Australians aged 20 to 29 had been underpaid superannuation in the 2021/22 financial year.

This age group is the most likely to have unpaid super, compared to 28% of Australians in their 30s and 21% of people in their 40s.

The report found that more men had been underpaid super (1.6 million) than women (1.3 million). However, women’s super balances tend to be lower due to a range of factors. For instance, being more likely to take parental leave, and lower pay.