Workers who clock in more than 30 hours per week and earn more than $450 per month from the same employer get to take advantage of a superannuation. Superannuation have been around for more than 25 years helping Australians save for retirement. However, what if you don’t work the required number of hours or make the needed amount per month from one employer? It’s becoming a struggle and it’s estimated that 20% of casual workers are missing out on saving for retirement.
What’s a casual worker? Casual workers are those who often work multiple jobs, part time jobs, or those who are under 18 and cannot contribute 30 hours a week or more to their job due to their studies. For example, a person who works 3 different jobs and earns less than $450 per month at each job and works less than 30 hours per week at each individual job would not be super eligible.
It’s hard enough to save enough money for retirement as it is – it’s even harder when workers aren’t eligible for employer and employee contributions due to casual employment. If you’re a casual worker, what can you do to take advantage of a super?
If your employer is not giving you enough hours and you’re not making more than $450 per month from one job, push your employer for more hours and higher pay. It’s been shown that most casual part time workers do want permanent employment with better hours and pay, but that they’re not finding jobs available that are willing to offer it. However, once you’ve been with an employer for awhile and have a good track record, it’d be the perfect time to have a conversation to see if your good work ethic makes your employer reconsider your hours and pay.
Are you “on the books”, or are you paid in cash? Sometimes casual workers are paid in cash in order to get around the tax system. This usually benefits both the employer and the employee in one way or another. However, if you’re paid cash in hand and you work the number of hours and make the amount of money required to have a super, you may want to rethink your strategy. While you may end up with more cash in hand now, it’s going to limit your retirement savings down the road.
If you’re a casual workers that switches jobs a lot, make sure that you are taking your super with you. This isn’t usually possible if you opt for the employer’s default fund option, but it is possible if you choose your own fund. If you have more than one super fund, consolidate them into one fund.
Make sure that you’re checking your payslips to check that they are accurate. On your payslip, you should see the name of the fund that’s being contributed to and the contributions. Now, check the super fund statements that you receive. If the amounts do not match, it may be that your employer is not contributing their full share or there has been a mistake somewhere that needs to be corrected.
If you’re still not sure if you’re making the best decision when it comes to your superannuation, contact Camori Investments today. We can assist you with your super and retirement planning.