The changing economy, high fees and dishonest employers could see millennials lose hundreds of thousands of dollars from their superannuation funds, experts have revealed.
Despite the country having a $2.5trillion superannuation cache, financial specialists have warned the ‘gig economy’ – an increase in temporary or freelance work – has contributed to what they believe will be a ‘bleak’ future for young Australians.
‘We have debt from HECS, we have unbelievable debt from trying to buy your first house, we have the prospect of seven, eight, possibly nine or ten jobs in your life, incredible uncertainty about where your next pay cheque is going to be,’ investment banker Mark Carnegie told ABC’s Four Corners on Monday night.
Despite having a $2.5trillion superannuation cache, financial experts have warned the ‘gig economy’ has contributed to what they believe will be a ‘bleak’ future for young Australians (stock image)
‘They are facing Game of Thrones. Winter is coming.’
Associate Professor Sarah Kaine with UTS Business School warned that if those working as independent contractors for companies like Uber and Deliveroo do not have super arrangements, it will ‘come back and bite us’ when they want to retire.
Someone will have to bear the brunt of not enough superannuation, she said.
Ms Kaine also revealed that women in the workforce fair ‘poorly’ and ‘have about half the super savings that men generally do’ because of their lower salaries and maternity leave.
Hospitality worker Lisa Pellegrino (pictured) claims a former boss did not contribute $6,500 to her super, despite it being listed on the 28-year-old’s pay checks
In 2015, more than 5 per cent of the superannuation due – $3billion – was not paid by employers, according to the Australian Tax office (stock image)
SuperRating’s founder Jeff Bresnahan told the program man millennials are not paying enough attention to their superannuation funds and encouraged people to change to MySuper accounts, which has a set low fee.
‘If you’ve got a 2 per cent fee coming out of your account, year in, year out, versus a 1 per cent fee, then that could make something like a 30 to 40 per cent difference to your retirement benefit. It’s like saying, ‘Do you want to receive $500,000 or $750,000?’ he told Four Corners.
Hospitality worker Lisa Pellegrino claims a former boss did not contribute $6,500 to her super, despite it being listed on the 28-year-old’s pay checks.
In 2015, more than 5 per cent of the superannuation due – $3billion – was not paid by employers, according to the Australian Tax office.