I had no idea where my lost super was or the names of the funds. I just new it was scattered everywhere and I should definitely have more than $3,000 in my super. Australian Super Finder found all 7 of my funds and now my balance is almost $50,000. Thank you so much for getting my super back on track. ? Leonie, Thomastown VIC

Super Facts and Tips

Self-Employed Workers Less Better Off Than Workers During Retirement

Nowadays, people dream of the freedom and liberty provided for by self-employment. This seems to be supported by the fact that many people would rather own their own business or work without an employer.

However, the reality is that self-employed workers are usually unable to save anything for their retirement compared to regular workers who save thousands of dollars for their superannuation.

Self-employed workers who do save something for their retirement save less than regular workers, according to the Australian Bureau of Stats.

If you are married, couples usually need around $560,000 during retirement to enjoy a comfortable income after they stop working, and this amount includes about $250,000 from the pension age based on data from the Association of Superannuation Funds Australia.

Self-employed workers comprise about 10 percent of the labor force and about 20 percent of these guys are over 60 years old - relative to the 9 percent of all workers.

Women who are self-employed are even having a harder time than the others with super balances lower than males and females who are not self-employed.

Self-employed workers are expected to struggle in reaching comfortable levels of retirement benefits with only one-fourth of those who are retiring having more than $100,000 in super balances compared to half of the workers with the same age.

Towards retirement, self-employed workers who are around 60 to 64 had about half the superannuation of workers who take advantage of laws that make their bosses contribute around 9.5% of workers wages into the superannuation fund when they are getting paid. With this in mind, it's a wise decision for self-employed workers to contribute to superannuation funds.

Self-employed workers are most probably going to rely on other investments like their company or attempt to save for their retirement. However, this can be a risky strategy according to ASFA President Pauline Vamos.

Pauline stated that there is no doubt people are going to rely on property, but domestic costs will not 100 percent of the time increase and rental homes could become a liability. Counting on selling businesses so you could make sure that you still have security later on could also be dangerous. According to the ASFA president, we are living in a world that is constantly changing and businesses that have value today may not have any value at all in the future because of changes in technology so superannuation could help you manage the risks. This is indeed a good decision for the company.

Vamos said that while a lot of individuals opt to work later in life, a lot of the self-employed have many tough physical roles and work in areas like construction or taxi driving that could stifle your ability to work for a while. It could be a case of a willing spirit but a weak body. If you put money on your superannuation fund would be a good way to benefit in terms of taxes according to her.

All information on this website is of a general nature only. We have not taken into account your financial situation, needs or objectives. You need to make up your own mind and ascertain yourself if it is right for you. We recommend you read the product disclosure statement(s) and the financial services guide before making any financial decision.

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