Start young to retire strong

Our Senior Wealth Adviser Dawn Thomas recently joined Ausbiz’s The Advisory to discuss the importance of educating young people about superannuation.

For many young Australians, super is little more than a line item on a payslip. Yet as Dawn explained, the decisions made in those first few years of employment can shape retirement outcomes decades later – and the more they know, the stronger their long-term position is likely to be. 

One Super account for life

If workers have had a few part-time or casual jobs, there’s a good chance they may have more than one Superannuation account without even realising it. Dawn explained that bringing those accounts together is one of the simplest ways to improve long-term outcomes.

For those just entering the workforce, there’s positive news. With the introduction of super stapling legislation, a super account now follows an employee from job to job, reducing the risk of new accounts being opened each time a person changes employers.

That said, early decisions still matter. Many families don’t realise that a child’s Superannuation journey begins with their very first Super Guarantee payment. If no fund is nominated, an employer will typically allocate a default option – and that fund may remain in place for years unless the individual actively makes a change.

Why parents play a pivotal role

Dawn is passionate about the influence parents can have in shaping positive financial behaviours from the outset, saying “If your kids are working, it’s time to start having that conversation.”

That means explaining how superannuation works, what investment options mean, and why awareness matters. A short discussion at 18 or 19 can have compounding benefits for life.

She highlighted that actively reviewing and selecting an appropriate fund – rather than simply remaining in a default option – can have a $100,000 impact on retirement outcomes over a full working life, making this an important discussion for families to have early. 

Tools that make comparison easier

Importantly, young Australians and their families are not expected to navigate this alone.

Dawn pointed to helpful resources such as ASIC’s MoneySmart website and the ATO’s ‘YourSuper’ comparison tool, which allow individuals to review fund performance, fees and default returns in a straightforward way.

Strategies such as salary sacrifice and government co-contribution schemes can help accelerate balance growth for young earners – particularly those in the beginning stages of their careers when contribution habits are being formed.

Small decisions, significant outcomes

The key message was clear: don’t put off thinking about your superannuation until mid-career.

Early consolidation, thoughtful fund selection and consistent contributions may appear minor in isolation, but combined with time – the most powerful compounding force available – they become transformative.

Whether you’re a young professional starting your first job or a parent wanting to help your child, our team at The Wealth Designers brings structure and clarity to those early financial decisions – helping you build momentum now so you can LIVE WELL™ later.

Watch the full Ausbiz segment here.

Plus, if you missed it, read our piece on Dawn’s previous Ausbiz appearance: Why High Earners Must Review Cash Flow