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Voluntary super contributions jump almost 30 per cent as COVID period triggers greater engagement
Super and retirement
10 January 2022
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Analysis of AMP’s nearly one million superannuation members shows they are 27 per cent more likely to be making voluntary contributions to their super than before COVID. These additional contributions are also 28 per cent larger than pre-COVID levels.

Members contributed an extra $296 to their super over the three months to September 2021, compared to the same period in 2019. These contributions, if maintained, would amount to an additional approximately $75,000[1] in retirement savings for members over a 40-year period.

Members who made withdrawals as part of the Government’s Early Release of Super (EROS) scheme are 14 per cent more likely to be making voluntary contributions to their super than they were pre-COVID. Those working in the retail industry, one of the most impacted by COVID, are restoring their EROS funds faster than any other industry.

The research also shows that additional voluntary contribution rates for women are growing six per cent faster than men, following earlier findings that EROS widened the gender super gap.  

Despite the increase in voluntary super contributions from EROS participants, their contribution rates continue to lag the wider population by 15 per cent.

Members have increased their engagement with super, with more than 840,000 visits to AMP’s online education content in the three months to September 2021, a four-fold increase compared to the last three months of 2019. Of this content, the article: “How much super should I have at my age?” was the most read in 2021.


AMP’s Head of Technical Strategy for Superannuation John Perri, commented:

“COVID has been a financial set-back for millions, particularly the financially vulnerable, with many withdrawing from their superannuation to access much needed funds.

“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.

“More Australians are accessing education resources and making active choices with their super through voluntary contributions when they’re able to.

“It’s also encouraging to see more women making voluntary contributions and taking action with their super, and those working in retail, an industry hit hard by COVID.

“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.

“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.

“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.

“It’s never too early to engage with super and take greater control of your long-term finances.”

Key findings from AMP’s research include:

  • Members are 27 per cent more likely to be making voluntary contributions to their super than they were pre-COVID.
  • These contributions have increased 28 per cent in value since COVID, equating to an additional $296 per quarter.
  • Members who made an EROS withdrawal are 14 per cent more likely to be making voluntary contributions to their super than they were pre-COVID, yet continue to lag the general population by 15 per cent.
  • While more men are making voluntary contributions compared to women, a proportionately higher number of women are choosing to make voluntary contributions since COVID-19, with their contribution rates growing 6 per cent faster than men.
  • The strongest recovery in re-contributed EROS withdrawals is in the retail industry, with 5 per cent of EROS withdrawals re-contributed.

Five ways to boost your super balance

  1. Consider salary sacrificing – Concessional or before-tax contributions like salary sacrificing are a great way to add to your super balance. Salary sacrifice contributions are voluntary contributions paid out of your before-tax income, also meaning your taxable income is lessened.
  2. Look at after-tax contributions – These types of contributions refer to money put into super funds using after-tax dollars and that also aren’t claimed as a tax deduction. People can choose to make non-concessional contributions when they’ve reached their yearly concessional contribution cap.
  3. Spouse contributions – These can be great options if your spouse has spare cash and you earn less than $40,000 a year. Eligible spouses may also benefit from a tax-offset on the after-tax contributions made into your super account.
  4. Government assistance – For low-to-middle-income earners that make an after-tax contribution to super, where a tax deduction isn’t claimed, there might be the opportunity to claim a government co-contribution of up to $500. There’s also the low-income super tax offset (LISTO) for Australians earning $37,000 or less a year who receive concessional super contributions.
  5. Consolidate your super – There is close to $14 billion lost and unclaimed super and if you think you may have some super floating around in the system from a previous employer, it’s worth doing a super search to locate it. If any super is found, consolidating it into one account can be a great way to manage it and avoid paying multiple fees and charges.

For more information members should consider accessing intra-fund advice from the superannuation provider, usually provided at no additional cost.

[1] In today’s dollars calculated using MoneySmart superannuation calculator assumptions – 7.5% pa earning rate / investment return, 7% tax rate on earnings, investment fees of 0.85% pa, and discounted for today’s dollars at 2.5% pa