Speaking to Nestegg, Firefly wealth director Adele Martin said while superannuation can be highly useful, it’s not necessarily the be all and end all for those in earlier life stages.

“While on paper it absolutely makes sense because of the tax advantages, the other thing you have to bear in mind is it's quite a long time before you can access the money so you lose some flexibility, and the other thing is the government can restrict it before you make it to retirement,” Ms Martin said.

“I wouldn't say don't build up super, I just wouldn’t suggest putting all your savings into it,” she added.

Instead it’s about looking at your priorities and financial goals, and deciding where your money will be of most use to you.

“People often get confused about whether they should invest in super or in their own name. It’s worth taking a step back, looking at their goals and what they want to achieve,” Ms Martin said.

“Firstly assess whether they should invest, then the asset class most suitable to their situation, and then lastly the tax structure, whether it’s in your name, your super, or a trust etc.,” she explained.

Would-be investors should also examine their life stage and particular financial situation.

“Certainly when your mortgage gets down like when you're in your late 40's and the kids are getting off your hands a little bit, that's when I'd be looking at what you want to do with it,” Ms Adele said.

“Then again if you want to retire before you can access their super, its vital you build up wealth outside of it. I'm seeing a trend with people wanting to work part time in their fifties, and in that case you need wealth built up,” she explained.

However while she said superannuation shouldn’t necessarily be the number one priority for younger Australians, Ms Martin insisted it still serves an important function.

“The upcoming further reduction to the concessional and non-concessional caps means that people can’t wait until they pay off their mortgage to dump a whole heap of money into super,” she said.

“Instead we can build wealth outside of superannuation and as they get closer to retirement, and it becomes more unlikely the government may tinker with it, then superannuation can make more sense.”