Voluntary super payments shrink

Australian workers back compulsory super but tight economic times mean some no
longer want to top it up from their own pockets.
A Newspoll survey, released on Tuesday at a superannuation conference on
Queensland's Gold Coast, reveals 37 per cent of those making voluntary super
contributions will stop doing so.
Fiona Reynolds from the Australian Institute of Superannuation Trustees says there
are several reasons voluntary top-ups are slowing.
She said respondents who indicated they'd stop voluntary payments included those
who'd lost jobs, were making extra mortgage repayments while interest rates were
low, and those who'd reacted to negative growth in superannuation funds.
"For the major superannuation funds, it won't have too much of an impact in that
they have very strong compulsory superannuation flows," Ms Reynolds said.
"Some of the big funds have $100 million that comes in every month in investable
money."
Smaller funds could have difficulty managing cash flow but should not face liquidity
problems, she said.
More people were "engaged" with their superannuation than commonly thought, she said.
National Seniors Australia chief executive Michael O'Neill said the compulsory
nature of superannuation meant it should be continually scrutinised.
"The industry needs to retain the confidence of the community that it is performing
and effectively managing the funds that have been provided to them," Mr O'Neill
said.
"The superannuation industry will be increasingly amongst the biggest portfolio
holders in the equities market.
"They need to be actively protecting the investments of ordinary Australians."
The survey also showed 81 per cent of 1,000 respondents thought superannuation was a
good way to invest.