More Millennials, Gen Z are making voluntary contributions to super, AustralianSuper data finds

To grow her wealth, Megan Dwyer has taken her dad’s advice — and it’s paying off. See how and try our savings calculator.

To grow her wealth, Megan Dwyer has taken her dad’s advice — and it’s paying off.

The Millennial, who is a childcare worker, started contributing just $20 a week - around $960 a year to her superannuation two years ago.

Ms Dwyer, 32, from Sydney, who earns a little over $100,000 a year, now puts $50 a week — or around $2600 a year — into her super, on top of her contributions through work.

She is one of many Aussie Millennials and Gen Z who are prioritising their super to prep early for retirement.

Megan Dwyer, a 32-year-old Sydney-based childcare worker, has been making voluntary contributions to her superannuation account for the past two years. Picture: Supplied

“He (my father) said to me, ‘even if it’s just the smallest amount, any contribution is great’. I was in a position where I was able to put aside a little bit a week. At first, I wasn’t really putting a hell of a lot into it. It was really the bare minimum,” she said.

“But I think just having that awareness of my super fund was really important because I feel like a lot of people probably don’t even know how to check it and the resources available to them. I’ve had conversations with some of my employees at work where they didn’t know you could make voluntary contributions.

“And it’s so easy to do. Mine is just an automatic direct debit every week. I don’t even think about it. Then when I go into the app and check my super I’m like, ‘Oh my gosh, look at it. It’s growing.’ And I check it a lot. Maybe too much! Being able to see the growth has only motivated me more.”

New research released by AustralianSuper also shows that despite being hit hard by the cost-of-living crisis which they colloquially call “cozzie livs”, three in 10 Gen Z and Millennials are making voluntary super contributions.

Seventy-eight per cent of Gen Z and Millennials agree superannuation is as important to them as looking after their physical health.

Jenny Brown, CEO & Founder of JBS Financial Strategists, said younger people don’t want to be waiting until 60 or 65 to retire.

JBS Financial Strategists CEO Jenny Brown. Picture: Supplied

“The older end of the Millenials are reaching out more than they have in the past (for advice), they know that they need to take control of their future as they are likely to be living longer than their grandparents and need to ensure they have enough,” she said.

AustralianSuper data also shows that more than 600,000 Millennials and Gen Z members have used the fund’s app in the past year to manage their super – which is 50 per cent higher than the amount of Gen X and Boomers.

Tools like the Super Projection Calculator have also seen a surge in usage, with Millennial engagement up by 316 per cent over five years.

“The fact that Millennials and Gen Z are embracing online planning tools shows they want to take control of their super in an accessible and informed way,” Shane Hancock, AustralianSuper’s General Manager of Retirement, said.

Shane Hancock, AustralianSuper’s General Manager of Retirement. Picture: Supplied

Ms Brown said finding the right balance between salary sacrifice and paying down non-tax deductible debt is the key.

“Knowing that compound interest works within super in a concessionally tax environment, but also HELP debt will magnify over the years if you don’t pay it down, once your income is over $54,435 then you will have to start paying, remembering it will continue to go up with interest,” she advised.

“Getting a home loan with a HELP debt is often harder, so making sure you have that under control is important when looking at adding more into super. Ensuring you know what your expenses are and live within your means and have a plan in place to achieve your goals.”

If in doubt, Ms Brown said it is best to seek financial advice.