A super story about the value of working

It’s easy to overgeneralise about the differences between the generations. While each of us is unique regardless of the generation we hail from, research^[1] shows that when it comes to work there can be surprisingly little difference between us.

Many of us—young and old—satisfy our need for social interaction at work. Some focus on earning money and saving for the future. Working can often provide a sense of purpose too, particularly for people who do not want to stop work altogether, even when they’re old enough to retire.

In fact, there is an increasing interest among older people, especially women, to continue working. According to an intergenerational report^[2] about Australian workers, around 70 per cent of women aged between 15 and 64 will be working in 2055, up from 46 per cent in 1975^[3].

Today’s workplaces can include one of the broadest intergenerational mixes and the highest levels of diversity we may ever know. Digital natives from generation Z may be working side-by-side those from the silent generation who, in the mid-1940s lived through the end of the second world war. It’s a vast timeframe when we stop to consider the experiences people from earlier generations have had.

We’re learning a lot from each other at work. The relatively recent rapid rise in the use of technology creates an obvious difference between the generations, while also acting as a point of connection.

Those who’ve grown up with technology lead those who haven’t while characteristics that typify earlier generations—such as loyalty and financial prudence—are valued by employers and co-workers alike.

Younger workers just starting out and setting up their financial futures can learn a great deal from those who are at the other end of their working lives.

Many older workers have built up their super balances while working. Although, because super has only been compulsory for about three decades and the payment rates were much lower, older workers have generally not been able to build the sizeable balances that young workers now have the chance to do.

Some older workers may still be earning money out of necessity to maintain their quality of life. In doing so, older workers can demonstrate to younger workers the importance of building financial stability—and having a strong super balance in later life.

Younger workers can learn through their older co-workers how super may become the single most important source of income and provide peace of mind as we grow older. Its importance is only emphasised by the fact that in Australia, we are projected to have the longest live expectancies in the world, with men and women expected to be living well into their nineties by 2055^[4].

Set up your financial future in three simple steps

It’s often almost impossible to imagine being older when we’re young. That’s why it can be beneficial for older colleagues to share stories and savings tips, and demonstrate the value of saving for the future.

If you have time ahead of you—whether it’s decades or just several years—consider how you can benefit from compound interest while taking these three simple steps to build your super balance:

1. Check-in with your super regularly—remember it’s your money. Keep an eye on your balance at MemberOnline and make sure your employer is paying your compulsory contributions (currently 10.5% of your salary) into your account.
2. Consolidate any other super accounts you have. By bringing all your super into one account, you’ll stop paying multiple sets of fees and insurance charges and can aim to keep more in your account. This simple step alone can add up and save you money over the years. Before you consolidate, consider how any benefits or insurance cover you have may change. Call us to discuss your options.
3. Contribute even a small amount yourself—as often as you can and watch your balance grow in time. Use our top-up calculator to see how the cost of your weekly coffees can give your super a big boost. Or consider paying less tax and sending some of your pre-tax income into your super.

We’re here to help 

If you’d like to chat about how to grow your super and have the best chance at a comfortable future when the time comes, or you need help with the paperwork to consolidate your super, call us Monday to Friday 8am—8pm on 1800 675 839.

This article is current at the date of publication and is subject to change. It contains general information and does not take account of your specific objectives, financial situation or needs or personal circumstances. You should seek professional financial advice, consider your own circumstances and read our Product Disclosure Statement (PDS) before making a decision about Prime Super. For a PDS and Target Market Determination call 1800 675 839 or visit the primesuper.com.au/pds. Prime Super Pty Ltd ABN 81 067 241 016 AFSL 219723 RSE L0000277 (Trustee), Prime Super ABN 60 562 335 823 RN 1000276. 

[1] What the generations want from work: new data offers surprises.

[2] Intergenerational Report, Australia in 2055.

[3] Intergenerational Report, Australia in 2055.

[4] Intergenerational Report, Australia in 2055.