Not 9-5? Sorting out your super for the way you work
Technological and social changes are having a huge influence on the workplace, which means exciting opportunities as well as extra responsibilities at work.
Compare the lives of two typical workers, one who lived at the start of the 20th century and one who lives at the start of the 21st century.
This is the future of work
We’ve now reached the stage where around one third of Australian workers don’t have a fulltime job. Futurists argue we’re just at the start of a massive transformation of the workplace that’s going to revolutionise the way people, especially younger ones, earn their living and live their lives.
It’s not something that’s widely recognised, but younger workers are at the cutting edge of a revolution that’s seeing the upending of old rules about how work is done and how careers unfold.
That’s throwing up a whole lot of benefits – job-hopping, telecommuting, flexible hours and lots of self-employment opportunities that previous generations could’ve only dreamed about. However, it also means individuals have to take more responsibility for funding their retirement, rather than leaving it to their employer or the Government to take care of.
The way we were
Our 20th century worker may study full time before entering the workforce in their mid-teens, proceeding to have a full-time, nine-to-five job at one organisation – or, at most, two or three jobs during their career before retiring on the old-age pension.
In contrast, today’s younger worker may be combining work and study from their mid-teens before becoming an unpaid intern, casual employee or self-employed contractor sometime in their twenties. If they’re a ‘slashie’, they might be doing two or three very different jobs at once.
Even if they do get a traditional full-time, nine-to-five job like their grandparents, chances are they’ll only be in it for a few years until they try something else. They might move into a different industry, get another qualification, take a year off to have a baby or go travelling around Europe.
Dealing with multiple super accounts in a fluid labour market
As today’s workers are likely to have several relatively short-term casual, part-time and full-time jobs, it’s not unusual for them to have 10-20 different super accounts before they’ve even turned 30. And this could mean paying unnecessary fees, lost super, and eventually a lower retirement balance.
You can avoid opening multiple super accounts with each job because Essential Super makes it easy for you to keep one super account for the rest of your career. At the click of a button, you can create and email the necessary paperwork, already filled in with all the required information, to any new employers you work for.
Because having many different jobs doesn’t have to mean multiple super accounts.
This article is intended to provide general information only and does not take into account your individual objectives, financial situation or needs. Colonial First State Investments Limited ABN 98 002 348 352, AFS License 232468 (Colonial First State) is the Trustee of Commonwealth Essential Super ABN 56 601 925 435 (Fund) and the issuer of interests in Essential Super which is a product of the Fund. A Product Disclosure Statement (PDS) for Essential Super is available from commbank.com.au/super or by calling 13 4074. You should read the PDS and assess whether the information is appropriate for you before making an investment decision. Colonial First State is a wholly owned subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124 (‘the Bank’).The Bank provides certain distribution and administrative services to the Trustee. The Bank and its subsidiaries do not guarantee the performance of Essential Super or the repayment of capital by Essential Super. An investment in Essential Super is via a superannuation trust and is therefore not an investment in, deposit with, or other liability of the Bank or its subsidiaries. An investment in Essential Super is subject to risk, loss of income and capital invested.