New research indicates a significant number of Australians would choose to opt out of compulsory super if they could.
The Parliamentary Budget Office – which analyses the financial implications of public policy proposals – has estimated that as many as 710,000 workers, or about seven per cent of all workers, would opt out of super if they had the chance.
The stats were exclusively uncovered by The Australian economics editor and Your Money presenter Adam Creighton, who told Trading Day he believes these wannabe opt-outs have got the right idea.
“For anyone on average incomes, super is actually not a good deal,” Creighton said.
“That’s because they won’t be able to save enough to avoid being on the pension, and a big chunk of their savings will be gobbled up in fees.”
It has been compulsory for employers to put a share of their employees’ wages or salary in super accounts since 1992.