In this guide
Working in the so-called gig economy through tech apps and platforms is no longer unusual, with 1 million Aussies (or 7.8% of all employees) working as independent contractors, according to the latest Australian Bureau of Statistics data.
In December 2021, around 19% of all employees (around 2.4 million) were also classified by the ABS as working as casual employees.
That’s a big change from the traditional model of permanent employment and it has major implications for how much you will end up with in your retirement nest egg and your standard of living when you finally get to put your feet up.
Why it matters for your retirement
When our super system was first established, most working Australians were employed in full-time permanent roles. The amount employers contributed to their employees was based on this model and it remains the dominant idea behind most of the policy decisions still being made about super.
Although the increasing casualisation of the workforce and the development of the gig economy have given many employees more flexibility and mobility – which can be great – it also means you don’t necessarily qualify for regular employer contributions to your super account if you work on a task or contract basis.
That’s a big deal, as the majority of contributions going into most employees’ super accounts are superannuation guarantee (SG) contributions made by their employer. If you don’t have an employer making regular contributions for you, your super balance is going to look pretty sick.
Part-time low-income employees who work for multiple employers and don’t meet the SG threshold (currently $450 per month) also miss out on having contributions made on their behalf.
