Retirement
2.85 million Australians missing out on pay entitlements
Fresh analysis of data from the Tax Office shows that about 2.85 million Australians are being short-changed on their superannuation entitlements, with modelling showing a massive knock-on impact on savings balances.
2.85 million Australians missing out on pay entitlements
Fresh analysis of data from the Tax Office shows that about 2.85 million Australians are being short-changed on their superannuation entitlements, with modelling showing a massive knock-on impact on savings balances.
This figure is about 90,000 people more than previously reported.
An Australian who did receive their full superannuation entitlement will have 50 per cent more in their super three years later, compared to someone who did not receive their entitlements, according to modelling from Industry Super Australia.
This is because superannuation works on the principle of compounding and preservation – meaning untouched savings is left to grow on itself year-on-year.
“The average gap in savings has blown out to $24,506 for 2016-17, up from $19,709 in 2013-14 – an increase of 25 per cent in the space of just three years,” Industry Super Australia said in a statement.
“It’s even worse for young workers under 25 with wages below $30,000 – those not underpaid in 2016-17 have an astonishing 81 per cent more super accumulated than those who are underpaid. This shows how much damage could be done if the government continues to fail to act,” the statement said.
For the boss of Industry Super Australia, Bernie Dean, the rate of underpayment of superannuation entitlements is now at “epidemic” proportions.
“Allowing employers to continue robbing workers of their super entitlement means these workers are going to end up worse off at retirement,” he said.
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