The Federal Government will examine issues associated with the superannuation savings of people aged under 40. The Government says the inquiry has been initiated because of concerns that the superannuation savings of young adults may be falling short of the savings level required to fund their retirement incomes.

The Investment and Financial Services Association (IFSA) supports the move, saying sustaining voluntary contributions by young people is a key factor in preparing for the economic well-being of our ageing population. 

CEO Richard Gilbert says examining the barriers and disincentives to contribute to superannuation savings for this demographic is important.

IFSA will evaluate current incentives to encourage voluntary superannuation contributions. “Increased investor education will also be a feature of the comprehensive submission we are preparing for the committee,” he said. 

“Improving awareness among younger Australians of the importance of saving early for retirement is certainly one suggestion we will put to the committee, along with the suggestion that the co-contribution be extended.”