Forty-four per cent of young people have either lost work hours, received a pay cut, been stood down or made redundant as a result of Covid-19, according to a recent report from ANZ.Young people have been hit hard by the current recession, but that doesn’t mean they’re down. We spoke with Melbourne-based millennials Maggie and Chloe about how they’ve managed to make ends meet during the pandemic.
The superannuation numbers are in and things aren’t as worrisome as some savers may have anticipated given the economic impacts of Covid-19.Industry research group SuperRatings assesses balanced super options from the major 50 funds in Australia through their SR50 Balanced Index. Across the last 12 months, Suncorp has been performing the strongest within this group with returns of 3.8%. This was followed by balanced options from BUSSQ (2.5%) and Australian Ethical Super (2.4%). While the estimated median return sits at -1.2%, SuperRatings said the top 15 assessed options saw slim but positive returns.However, these ratings don’t take into account smaller funds which haven’t been operating for more substantial periods and thus can’t report long-term returns (which is a key part of the ratings metric). When newer players were considered, Future Super took out the top spot with its Balanced Index delivering 5.52% growth in the last financial year. The social equality and sustainability-focused fund also took home silver and bronze, with its Renewables Plus Growth and Balanced Impact options garnering returns of 5.26% and 5.21% respectively.Co-founder of Future Super, Kirstin Hunter said this data shows Aussies they don’t have to sacrifice financial gain to maintain their ethical standards.“At Future Super we’ve long understood that investment in unethical businesses doesn’t just have a detrimental impact on the environment and society, but also represents a bad investment choice that will damage how comfortably Australians can retire,” she said.SuperRatings executive director, Kirby Rappell, also reminded super members this kind of investment is a long-term game.“Members should avoid chasing short-term results and ensure they are invested in a quality fund with the right investment strategy that is well positioned to deliver for their needs over the course of their working life,” Rappell said.In SuperRatings’ ten-year assessment, the top performers have been AustralianSuper, whose balanced option has returned 8.8% p.a. across the last decade, followed closely by UniSuper and Hostplus. RELATED: How to build an emergency savings stash and leave your super intact.
economy in flux, there’s even greater pressure on Aussies to stay on top of
their finances. But the strain is perhaps greatest on working mums. Mozo’s
latest research shows that during the COVID-19 lockdown, 28% of women acted as
the primary career for their children, while also working, compared to just 7%
of men. Mozo Director, Kirsty Lamont says that being a primary carer heightens
your workplace vulnerability with many of our survey respondents reporting they
have struggled to make strides in their career after taking leave. This is
creating what might be best termed, a ‘pink recession’: a long-term financial
crisis for many working women.
The EOFY has come to a rather somber close for Australia’s savers, with savings account rates dropping across the board in June. According to Mozo’s database, the average ongoing savings rate is now 0.71% p.a.