A looming retirement crisis may affect millions of Australians, as new research reveals that a large number of small business owners are not making regular superannuation contributions.
According to a national survey conducted by AMP Bank, only 55% of small business operators—mostly those with four or fewer employees—contribute regularly to their own super.
This means nearly half of this group is missing out on critical retirement savings, often choosing instead to reinvest in their businesses or manage cash flow challenges.
Unlike most Australian workers, who receive compulsory super contributions (now 12%), self-employed individuals and sole traders—who make up the majority of small business owners—are not required by law to contribute.
AMP’s modelling showed that investing even $100 per week into super from age 30, with a 6% annual return, could grow to more than $500,000 by retirement at age 65.
John Arnott, Director of GO at AMP Bank, acknowledged the financial pressure on small business owners but urged them to balance short-term business needs with long-term financial security.
He emphasized that tools such as banking apps and the ATO website can help automate super payments and improve financial visibility and planning.
Arnott also highlighted the tax advantages and compounding benefits of Australia’s super system, noting that even modest, consistent contributions can significantly enhance retirement savings.
