Recently at Intrust Super, we conducted a survey of our business partners to find out the impacts COVID-19 was having on their operations. The results showed that almost half of hospitality employers had to reduce staff hours by at least 20%. 60% said their staff levels may not return to normal until 2021 or later.
We saw this reflected in super contributions which, between January and July this year, dropped 61% for hospitality staff.
That’s a pretty clear indication that people in the hospitality industry are currently doing it tough. So it’s understandable that financial security might have jumped to the top of the priority list for a lot of people in the industry.
A workplace that helps staff feel safe, valued and fulfilled can result in improved staff retention, less sick days and better company culture. Addressing financial concerns can play a major role in improving these areas. That was true even before COVID-19.
A significant drop in super contributions could have a huge impact on your staff’s financial security and significantly reduce their income in retirement. These impacts would only be compounded by any withdrawal of super under the Government’s early release provisions.
As we move towards the recovery phase of this pandemic, it’s important that hospitality staff are aware of the contribution strategies that can help them rebuild their savings.
Intrust Super recently rolled out a comprehensive, customisable Service Program to our business clients, designed to help staff improve their retirement outcomes. The program includes educational seminars and free Super Health Checks to help staff think about what’s next for their super.
It’s a critical time to provide financial education and assistance to hospitality staff, to support them through some really difficult circumstances. The pandemic’s financial impact on the Australian economy has already helped many people start to take their long-term financial security more seriously.
Our team has noticed that more people are beginning to recognise the importance of super as a financial asset, especially after the early release scheme.
The earlier they capitalise on this, and start to look at strategies to accelerate their savings, the more opportunity their savings will have to grow, thanks to the magic of compound interest.
Intrust Super’s programs have so far proven very popular with hospitality workers and the businesses that employ them.
If young people have access to educational services and simple financial tools to help them grow their savings, they will have more opportunity to consider the various catch-up strategies available to them. Businesses are recognising this and have been booking us to deliver educational programs to their staff.
If you’d like to organise educational seminars, Super Health Checks, or even our full Service Program for your business, please contact Intrust Super directly by emailing service@intrust.com.au.
*Specific terms and conditions apply.
The opinions expressed in this column are my own and do not necessarily represent the view of Intrust Super.
The information contained in this document is of a general nature only, and does not take into account your individual financial situation, objectives and needs. You should consider the appropriateness of the general information having regard to your own situation before making any investment decision. For personal advice, please contact the Intrust360° financial advice team on 1300 001 360. A Product Disclosure Statement is available at www.intrust.com.au or call us on 132 467 for a copy.
Issued by IS Industry Fund Pty Ltd | MySuper Unique Identifier: 65704511371601 | ABN: 45 010 814 623 | AFSL No: 238051 | RSE Licence No: L0001298 | Intrust Super ABN 65 704 511 371 | SPIN/USI: HPP0100AU | RSE Registration No: R100439
