Retirement
AMP records 27% surge in voluntary super contributions
More AMP superannuation members are making larger contributions to their super.
AMP records 27% surge in voluntary super contributions
More AMP superannuation members are making larger contributions to their super.
AMP has revealed that its nearly one million members are 27 per cent more likely to be making voluntary super contributions compared to before the COVID-19 pandemic.
The value of voluntary contributions during Q3 2021 was also 28 per cent higher than two years earlier, resulting in an average increase of $296.
Members who made withdrawals under the Early Release of Super (EROS) scheme were 14 per cent more likely to be making voluntary contributions than prior to the pandemic.
“COVID has been a financial set-back for millions, particularly the financially vulnerable, with many withdrawing from their superannuation to access much needed funds,” said AMP head of technical strategy for superannuation John Perri.
“What is pleasing is that following the initial COVID period we have now seen higher-levels of engagement with super and members that participated in EROS seeking to restore their balances.”
However, voluntary contributions from EROS participants remain 15 per cent lower than the overall population.
After early analysis found that women were withdrawing a greater proportion of their super balances than men under the EROS scheme, voluntary contributions from women have increased 6 per cent faster than men since the beginning of the pandemic.
AMP said that if its members continued to contribute an extra $296 every quarter over 40 years, they would receive an additional $75,000 in savings at retirement.
“Our system is set up to allow us to benefit from the magic of compounding returns, through which even a modest increase in super contributions can amount to a significant increase in retirement savings over the long-term,” said Mr Perri.
Retail workers have now recontributed 5 per cent of their EROS withdrawals, more than workers in any other industry, according to AMP.
The firm also noted an increased level of engagement with super among its members with four times as many visits to AMP’s educational content during Q3 2021 compared to Q3 2019.
“We know the sooner members engage with and understand the benefits of our world-class super system, the better chance they have of taking full advantage and improving their quality of life in later years,” said Mr Perri.
“And hopefully, as the circumstances for those who’ve withdrawn super improve, they’ll be more aware of the importance of rebuilding their super and the ways they can do this.”
Superannuation
Payday Super bill introduces new challenges for SMBs, reveals Employment Hero CEO
The introduction of the Payday Super bill to the Australian Parliament has sparked a significant response from the business community, particularly among small and medium-sized businesses (SMBs)Read more
Superannuation
Rest urges Parliament to expedite payday super legislation
In a significant move towards enhancing retirement outcomes for Australian workers, Rest, one of the country's largest profit-to-member superannuation funds, has expressed strong support for the ...Read more
Superannuation
Recalibrated super performance test aims to enhance accountability and investment opportunities
In a move that signals a shift rather than a cessation, Australia's government has announced a targeted review of the superannuation performance test. This recalibration, prompted by the latest ...Read more
Superannuation
Super performance test faces a fork balancing member value productive investment and regulatory trust
APRA’s latest superannuation performance test results have reignited a high‑stakes debate: does the test optimise member value or unintentionally curb long‑term investment in housing, infrastructure ...Read more
Superannuation
Aware Super unveils innovative digital tool to boost retirees' financial confidence
Aware Super has unveiled a groundbreaking digital advice tool, Retirement Manager, designed to empower retirees by addressing their most pressing financial concerns. Developed in collaboration with ...Read more
Superannuation
APRA's super shake-up: Balancing accountability and innovation in the next round
Australia’s performance test has forced long-overdue transparency in super and accelerated consolidation. But as the regime broadens, its blunt edges are colliding with investment complexity, ESG ...Read more
Superannuation
APRA’s performance test is doing its job — but now it risks doing the wrong job well
Australia’s superannuation performance test has flushed out chronic underperformance and catalysed consolidation. But its latest results have reignited a bigger question: can a single, ...Read more
Superannuation
Rest invests in US-based REIT amid changes in debt financing markets
In a strategic move that underscores the evolving landscape of commercial finance, Rest, one of Australia's largest profit-to-member superannuation funds, has announced a significant investment into ...Read more
Superannuation
Payday Super bill introduces new challenges for SMBs, reveals Employment Hero CEO
The introduction of the Payday Super bill to the Australian Parliament has sparked a significant response from the business community, particularly among small and medium-sized businesses (SMBs)Read more
Superannuation
Rest urges Parliament to expedite payday super legislation
In a significant move towards enhancing retirement outcomes for Australian workers, Rest, one of the country's largest profit-to-member superannuation funds, has expressed strong support for the ...Read more
Superannuation
Recalibrated super performance test aims to enhance accountability and investment opportunities
In a move that signals a shift rather than a cessation, Australia's government has announced a targeted review of the superannuation performance test. This recalibration, prompted by the latest ...Read more
Superannuation
Super performance test faces a fork balancing member value productive investment and regulatory trust
APRA’s latest superannuation performance test results have reignited a high‑stakes debate: does the test optimise member value or unintentionally curb long‑term investment in housing, infrastructure ...Read more
Superannuation
Aware Super unveils innovative digital tool to boost retirees' financial confidence
Aware Super has unveiled a groundbreaking digital advice tool, Retirement Manager, designed to empower retirees by addressing their most pressing financial concerns. Developed in collaboration with ...Read more
Superannuation
APRA's super shake-up: Balancing accountability and innovation in the next round
Australia’s performance test has forced long-overdue transparency in super and accelerated consolidation. But as the regime broadens, its blunt edges are colliding with investment complexity, ESG ...Read more
Superannuation
APRA’s performance test is doing its job — but now it risks doing the wrong job well
Australia’s superannuation performance test has flushed out chronic underperformance and catalysed consolidation. But its latest results have reignited a bigger question: can a single, ...Read more
Superannuation
Rest invests in US-based REIT amid changes in debt financing markets
In a strategic move that underscores the evolving landscape of commercial finance, Rest, one of Australia's largest profit-to-member superannuation funds, has announced a significant investment into ...Read more
