.... are typically much lower than other members of the community.

Indeed, many of the self-employed and the very elderly, for instance, have no super at all.

Ross Clare, research director of the Association of Superannuation Funds of Australia (ASFA), writes in the August issue of the association’s Superfunds magazine: "A number of groups in the community are missing out on super, either entirely or through having lower balances than other similar individuals."

Clare points specifically to the self-employed, the unemployed and the very elderly. And he highlights the plight of many women who may not only earn a low income but commonly take a break from the workforce to have children – and therefore miss out on super.

In regard to the self-employed, Clare has learned that 30 per cent have no super. And among the self-employed with super, their balances are typically lower than other members of the same age, income and gender.

Clare says the Government could bring the self-employed within the compulsory super system by having contributions collected through their tax returns. Alternatively, businesses hiring contractors could be required to make payments to the tax office to cover superannuation.

And then there is the predicament of the very elderly. "Currently, most Australians in their 80s or 90s have little or no superannuation because they never had any to start with or their savings have been exhausted," writes Clare.

The plight of many Australians in terms of their inadequate or non-existent super savings truly focuses the need for governments and individuals to concentrate on trying to ensure that retirement incomes are as high as possible.

Are you in the fortunate position of being able to make the most of your opportunities to save in super?

By Robin Bowerman
Smart Investing Principal & Head of Retail,
Vanguard Investments Australia
6th August 2012