Daunted by volatile markets, some young investors are choosing to top up their superannuation to benefit from compounding even though the funds are locked up.
The 29-year-old customer relations officer from Melbourne considered investing directly, but for now she feels more confident putting her money into her nest egg than buying shares or other investments.“If it was something that I’d learnt about or was more confident in, then [investing] is something I would look into, but currently I’m not seeking to research any other investment,” she said.
It was unsurprising that young Australians were thinking more about their super, said Equip CEO Scott Cameron. A separate analysis of Equip members found the percentage of members younger than 40 making voluntary super contributions had increased by 80 per cent since the 2018 financial year. The average voluntary contribution had also jumped from $1800 to $3000 per person a year.
“I did a speech at a local high school recently and said to them, ‘It’s your money, be engaged with it’,” she said.When she was younger, the attitude was much more “you couldn’t touch it, so you didn’t care”, she added. “The drawbacks, obviously, are that you can’t access it until you retire. It forces you to put it away and you know you can’t live on those funds.”
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