Young people are prone to suffer from financial stress and putting extra money into super would be a form of masochism for those in that category. One aspect of super that is rarely if at all mentioned is that its purpose is also to provide income in ill health and it is known that people who suffered lower-than-expected retirement incomes due to forced early retirement tend to report significant declines in their general well-being.
"Financial stress classifies any individual who struggles to pay their utility bills, mortgage, or rent on time, and has foregone necessities, pawned or sold something, or has sought financial assistance from friends, family, or a welfare organisation.
Financial stress is more common among young people (20- to 29-year-olds), with 56% experiencing financial stress in 2015, down from 61% from 2006. For individuals aged between 40 and 49, half experienced financial stress, compared to only 39% in 2006. Finally, for those aged over 70, only 13% experienced financial stress, compared to 10% in 2006.
A separate analysis of HILDA data, examining individuals’ self-reported changes in standard of living, financial security, and overall happiness over the transition to retirement, found subjective well-being either improved or remained constant for the majority of people.However, the research also found that people who were forced to retire early after losing their job or due to poor health, and then suffered lower-than-expected retirement incomes, reported significant declines in their well-being."
