Almost half of Aussies not making voluntary super contributions

Almost half of Australians have never made an additional contribution to their superannuation potentially missing out on a significant opportunity to boost their retirement savings according to new research from Vanguard Australia.

The research found 46% of Australians have never made voluntary contributions beyond their employers' compulsory payments, despite rules allowing eligible members to make additional concessional contributions and benefit from favourable tax treatment.

The findings come as the end of financial year approaches and as policy makers continue to focus on retirement adequacy through measures such as payday super reforms.

Vanguard client of personal investors Renae Smith said many Australians remain unaware of one of the system's more flexible features, the ability to carry forward unused concessional contribution caps from previous years.

"Many Australians assume that if they miss contributing to one year, that opportunity is lost. But the carry-forward rule means those missed contributions can potentially be used later, when people are better placed financially," Smith said.

Under current rules, individuals with a total superannuation balance below $500,000 can carry forward unused concessional contribution caps from the previous five financial years. For some members, this could increase their available concessional contribution limit to as much as $167,500 in 2025 to 2026, including the standard annual cap of $30,000.

The flexibility may be particularly valuable for workers with fluctuating incomes, career breaks or one-off financial windfalls, according to Vanguard.

"This is particularly relevant in the current environment, where household budgets are under pressure and income can be uneven. It can benefit those who take career breaks, receive bonuses or inheritances, or experience fluctuations in earnings over time," Smith said.

The findings also point to broader challenges around engagement with superannuation. Australians engage with their super fund less than once a year or cannot recall the last time they did, while more than one-third have never compared superannuation fees.

Smith warned unused contribution caps eventually expire, creating a limited window for members seeking to maximise their retirement savings.

"Still, it's important to remember that unused caps don't last forever. If you don't use it, you lose it. That makes understanding what you have available, and acting before it expires, critical," Smith said.