Most Australians assume their retirement savings are quietly growing in the background. But new analysis shows that a little-known superannuation rule could be quietly costing some workers more than $11,000 by the time they retire.
The Superannuation Rule Catching Australians Out
According to new research from Industry Super Australia (ISA), employees who are paid wages less frequently — such as quarterly or irregularly — are missing out on thousands in compound interest each year. The gap stems from how some employers pay superannuation contributions only a few times a year, rather than alongside each pay cycle.
Under the current rules, employers are required to make super payments at least once every three months. But that delay can make a surprisingly big difference. Money paid into super later means less time for compounding returns to work — and over a career, that can add up to tens of thousands of dollars.
ISA’s modelling shows that a worker earning around $80,000 a year could miss out on more than $11,000 in retirement savings simply because their employer pays super quarterly instead of fortnightly, reports Yahoo Finance.
Calls for a Change to the Superannuation Payment System
Advocates are now pushing for reform to make superannuation contributions payable with every paycheck, not just quarterly. They argue that paying super more frequently would boost savings, reduce compliance errors, and close the gap for lower-income earners.
Supporters of the change say it’s also a matter of fairness. Workers often assume their super grows in real time, when in reality, large delays between contributions can mean months without earnings growth. The effect compounds over decades — particularly for younger Australians early in their working lives.
The government has already announced a shift toward payday super — meaning contributions would move in step with regular wage payments. The change is due to take effect in July 2026, giving employers time to update payroll systems and accounting processes.
A Growing Problem in Retirement Planning
Experts say the change can’t come soon enough. Missed or delayed contributions have been a recurring issue, especially among small businesses and casual or part-time workers. The Australian Taxation Office estimates billions of dollars in unpaid or late super payments each year, leaving many Australians short-changed.
Financial advisers warn that even small differences in timing can snowball over decades. For a worker in their 30s, lost interest and compounding over time could mean retiring with significantly less than expected.
What Workers Can Do Now
Until payday super becomes law, Australians are being urged to check their superannuation statements regularly to ensure contributions are being paid in full and on time. A quick glance at a payslip — or a check through the MyGov portal — can reveal if something’s amiss.
For most, the takeaway is simple: don’t assume your money’s working for you until it’s actually in your account.
