When it comes to saving for retirement, we all want to squirrel away the most money we can with the least hassle and disruption to our daily lives.
With the introduction of compulsory superannuation contributions in 1992, retirement saving became that bit easier, with employers directly depositing money into a fund before they were even able to get their hands on it.
Now a new superannuation tool has gone one step further, allowing Australians to contribute spare change every time they spend cash on everyday purchases, such as grocery shopping and fuel.
The SuperCents tool, launched by industry super fund Intrust Super, links members’ super and bank accounts, allowing them to make ‘micro-contributions’ to their retirement savings.
The tool allows users to contribute small amounts of cash automatically, based on their spending, as well as make top-up contributions without the need to fill in a voluntary contribution form which CEO Brendan O’Farrell described as a “major friction point” for members.
“Intrust Super’s membership are hardworking individuals who have enough on their plates managing odd hours and the costs of everyday living without having to think about retirement savings,” he said.
“Many of our members could be eligible to receive additional forms of contributions from the government. But because they don’t have the time to prioritise super savings, they could be missing out.
“With SuperCents, they can round-up the cost of their everyday transactions and start making small contributions over time. Their savings can grow in the background without them having to think about it.”
Another perk of the tool is that customers do not need to open any new accounts to make use of the technology, as it is supported across a wide range of banking platforms.
O’Farrell said that many people are faced with challenges when it comes to super contributions however SuperCents would provide a simple way for them to start making small, extra deposits that have a big long-term impact.
“Any small change our members save now could add up to thousands of extra dollars in retirement savings for their future.,” he said. “Every cent counts.”
IMPORTANT LEGAL INFO This article is of a general nature and FYI only, because it doesn’t take into account your financial situation, objectives or needs. That means it’s not financial product advice and shouldn’t be relied upon as if it is. Before making a financial decision, you should work out if the info is appropriate for your situation and get independent, licensed financial services advice.