The $100-a-week super habit that could save Aussie business owners from a $500,000 retirement shock
AMP Bank
has found that close to half of Australia's smallest business owners, including sole traders and micro-businesses, are not regularly contributing to their superannuation, potentially setting themselves up for
financial insecurity
in retirement.
In a national poll of 2,000 small business operators, 55 per cent reported that they make regular super contributions, meaning that 45 per cent do not. That's a significant shortfall, especially considering that most salaried workers in Australia benefit from the mandatory Superannuation Guarantee, now set at 12 per cent.
Also Read:
Chinese threat or American pressure? What really fueled Australia's 1.3 billion missile purchase
But super contributions remain optional for the country's 2.2 million self-employed workers, including tradespeople, creatives, consultants, and other gig economy participants.
Live Events
And many are choosing to forgo them, often to keep their businesses afloat.
'It's understandable that many
small business owners
prioritise reinvesting in their business, which can mean super contributions fall by the wayside', said John Arnott, Director at AMP Bank GO on X.
The long-term cost of short-term focus
The financial trade-off might seem minor in the short run, but the long-term implications are staggering. AMP Bank's modelling shows that contributing just $100 a week to super starting at age 30, assuming a 6 per cent return, could yield over $500,000 by retirement at age 65.
That means skipping those small contributions now could result in a half-million-dollar shortfall later in life, a costly oversight for anyone banking on a comfortable retirement.
Also Read:
Why Australia is taking only 280 people a year from Tuvalu, even as one third want to flee
Who's falling behind?
The research revealed apparent disparities across industries and regions. Solopreneurs and businesses with four or fewer employees were among the least likely to contribute to super, with just 50–55 per cent making regular payments.
Owners of younger firms (1–3 years old) and those located in rural areas were also among the least engaged with super savings.
Meanwhile, small business owners in financial services showed the highest contribution rates (71 per cent ), while those in creative fields, already prone to income instability, had the lowest, at just 46 per cent.
A system not built for freelancers and sole traders?
The issue isn't just financial, it's also structural. Australia's superannuation system was designed mainly with full-time employees in mind, not the growing population of freelancers and sole traders. Flexibility may be a feature of self-employment, but it's also a flaw in this case.
Unlike employees, the self-employed don't have an employer automatically paying super on their behalf. And unless they make a conscious effort to pay themselves, and their future, first, they may reach retirement with little or nothing saved.
Also Read:
Mysterious interstellar object enters solar system; the largest, fastest, and only the third ever recorded
What can small business owners do now?
Arnott urged small business owners to balance short-term survival and long-term planning. 'Even small, regular contributions can have a massive impact thanks to the power of compounding,' he said.
He also recommended practical strategies for boosting super savings.
These include setting up automatic contributions through your banking app or accounting software, making lump sum contributions during periods of healthy cash flow, using government incentives such as co-contributions or tax deductions, and seeking support from your super fund, accountant, or other small business owners.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Indian Express
27 minutes ago
- Indian Express
Holtec plans to go public early next year to part-finance proposed SMR-based projects in India: CEO
Holtec International, a key player in the American nuclear industry that was cleared by the US Department of Energy (DoE) earlier this year to invest in India's atomic energy sector, plans to go public between April and June next year to raise around $5 billion, Kris P. Singh, the Indian-American promoter and CEO of the company said. Camden, New Jersey-based Holtec, one of the world's largest exporters of capital nuclear components and a frontrunner in the emerging small modular reactor (SMR) space, proposes to combine an initial public offering with some private placement to raise capital for its upcoming projects, including proposed SMR-based projects in India. 'Foreign companies are now getting ready to come and invest in India… At our end, we understand that a lot of capital is needed to do that. Of course, we will borrow capital, but our own capital has to be increased. So we have launched a programme for early next year, and around April or so, we will do an IPO. In addition to the public offering, we will also do some private placement… So, a portion of the funds (being raised) will be through the IPO, while another portion would be through private placement… We want to raise about $5 billion to begin with, and then, of course, we will raise more. And the one main reason I'm doing it is so that we can go build in India,' Singh told The Indian Express. On the private placement plan, Singh said he proposes to unbundle some parts of the company (Holtec International) and offer some of these segments to investors through the private market, including sovereign wealth funds and other investors. The idea, he said, is to altogether raise about $5 billion by mid-next year, between April and June 2026, so that Holtec International is 'well placed to begin construction of SMRs in India'. 'That is, if India puts in place the legislative provisions needed for enabling these investments. If that does not go through, I will direct that (the funding) to other places. But the idea is to get ready in the hope that the Indian government will clear the way for us to invest,' Singh said. If completed, Holtec's IPO would be the largest nuclear energy listing in years. Holtec's planned entry into the public markets comes at a time of surging interest in nuclear energy from data centers and the clean energy transitions planned by utilities across markets. The company is also learnt to be in talks with Abu Dhabi-based investment fund International Holdings Company for a potential fundraise. For India, Holtec holds special significance. Unlike Westinghouse Electric Co and GE Hitachi Nuclear Energy, the two American nuclear industry flag bearers that were seen as early frontrunners for an entry into India's civil nuclear sector, the smaller, privately-owned Holtec is now suddenly in the lead to invest in the country's nuclear sector. The company was accorded an unprecedented regulatory clearance by the US DoE less than three months ago that potentially sets it on course to leverage the commercial potential of the Indo-US civil nuclear deal. The March 26 approval from DoE effectively cleared Holtec International's application for specific authorisation with respect to the DoE's restrictive regulation that is referred to as '10CFR810'. This specific authorisation (SA IN2023-001) now conditionally permitted Holtec to transfer 'unclassified small modular reactor technology' (SMRs) to its regional subsidiary Holtec Asia, as well as Tata Consulting Engineers Ltd, and Larsen & Toubro Ltd in India. Holtec's pitch is for fostering a public-private initiative centred on the American company's flagship small modular reactor, the SMR-300, to potentially help break this stasis in the nuclear engagement between the two countries, with the possibility of using existing coal plant sites in India to deploy its proposed SMR-based projects and the possibility of joint manufacturing at some point in the future. For that to happen, the Indian government is gearing up to move two crucial amendments in the laws governing the country's atomic energy sector. The first relates to the easing of provisions in the nuclear liability law while the second amendment is aimed at enabling private companies to enter nuclear power plant operations in the country, and could also enable foreign companies to potentially take a minority equity exposure in upcoming nuclear power projects. Hitherto, atomic energy has been one of India's most closed sectors. The twin legal amendments are being seen as a reform push that could help leverage the commercial potential of the Indo-US civil nuclear deal nearly two decades after it was inked. New Delhi is also keen to package this as part of a broader trade and investment outreach with Washington DC, which could eventually culminate with a trade pact that is currently under negotiation. On the US side, the issue of getting a specific '10CFR810' authorisation (Part 810 of Title 10, Code of Federal Regulations of the US Atomic Energy Act of 1954) had been a big regulatory hurdle for New Delhi. This is because the regulation, while giving American companies such as Holtec the ability to export equipment to countries such as India under some strict safeguards, explicitly barred them from manufacturing any nuclear equipment or performing any nuclear design work in India. This provision was a non-starter from New Delhi's perspective, which wanted to participate in manufacturing the SMRs and co-produce the nuclear components for its domestic needs. With Washington DC having eased out the regulatory hurdle in the form of the 810 authorisation, the ball is now in New Delhi's court to push through the two legislations at its end. As of now, two SMR projects have reached the operational stage globally. One is an SMR named Akademik Lomonosov floating power unit in Russia that has two-modules of 35 MWe (megawatt electric) and started commercial operation in May 2020. The other is a demonstration SMR project called HTR-PM in China that was grid-connected in December 2021 and is reported to have started commercial operations in December 2023. Apart from Holtec's SMR-300, other emerging western contenders in the SMR segment include the Rolls-Royce SMR, NuScale's VOYGR SMR, Westinghouse Electric's AP300 SMR and GE-Hitachi's BWRX-300. India is hoping to pitch itself as a credible alternative to the incumbents in this niche field, riding on its strong track record of having operated small-sized reactors over an extended period of time and the ability to manufacture nuclear reactors cost-effectively and at scale. This also comes at a time when Beijing is working on an ambitious plan to seize the opportunity of global leadership in the SMR space, unlike large reactors where China has been a latecomer. Like India, Beijing is seeing SMRs as a tool of its diplomatic outreach in the Global South and that the country could shake up the SMR industry, just as it has done in the electric vehicle sector. Established in 1986, Holtec provides spent fuel storage and logistics support for over 140 nuclear plants worldwide, as well as services such as nuclear decommissioning and increasingly, new reactor development. The company is now attempting what would be a first in American history—reviving a shuttered nuclear plant. The Palisades Nuclear Plant in Michigan, closed in 2022 for economic reasons, is slated to restart by the end of 2025 and this reactivation is being funded in part by a $1.5 billion loan guarantee from the US DoE. Holtec plans to install two of its own SMR-300 small modular reactors at the site, in collaboration with Hyundai Engineering & Construction. Holtec's SMR-300 is a pressurised light-water reactor that will produce at least 300MWe of electric power on a small parcel of land. Unlike most traditional nuclear power plants that require large quantities of water, the SMR-300 can be adjusted to use an air-cooling system and the modular design means it is easy to scale up projects. The criticism is that there is still no commercial SMR project that is up and running and the viability of these units is yet to be proven. Holtec already has a footprint in India, with a Pune-based company operating in the non-nuclear energy business.
Hindustan Times
32 minutes ago
- Hindustan Times
Ukraine signs deal with American firm for joint drone production, says Volodymyr Zelensky
Ukrainian President Volodymyr Zelensky said on Thursday that Kyiv has signed an agreement with an American company, Swift Beat, to jointly produce drones. He termed this as "a crystal clear priority". Ukraine Volodymyr Zelensky said he is also in talks with Denmark, Norway, Germany, Canada, Lithuania, and the UK to start joint production.(X/@ZelenskyyUa) In a post on X, Zelensky said that the Ukrainian-American cooperation has been signed for the production of thousands of drones this year alone. The Ukrainian President said that the production is expected to increase significantly in the coming year. "The visit to Denmark begins with an important step for our defense. An agreement has been reached on Ukrainian-American cooperation in drone production, including interceptor drones — a crystal clear priority," Zelensky said. ALSO READ | Ukraine seeks US help after biggest Russian airstrike of 537 weapons; F16 pilot killed He further added, "Interceptors to destroy enemy drones and missiles, quadcopters for reconnaissance and fire adjustment, and long-range strike drones — all of these will be produced in much greater numbers to help us achieve our defense goals and protect the lives of Ukrainians." Zelensky said he is also in talks with Denmark, Norway, Germany, Canada, Lithuania, and the United Kingdom to start joint production. He said that Ukraine plans to sign agreements in the Summer to start exporting weapon production technologies. This comes just two days after the US reportedly stopped the delivery of air-defense interceptors and other weapons intended for Ukraine and other weapons meant for Ukraine, instead using those to beef up Pentagon stocks. ALSO READ | Trump's Big Beautiful Bill failing because of Ukraine weapons freeze? Here's the key link The Wall Street Journal reported, citing a Trump administration official and two congressional aides, that Washington's decision to withhold the arms deliveries to Ukraine reflects the Trump administration's loosening commitment to aiding Kyiv in its fight against Russia. Following a Pentagon review of US military assistance, 'this decision was made to put America's interests first', said Anna Kelly, a White House spokeswoman. The shipments, which included Patriot air-defense interceptors, air-to-air missiles, Hellfire air-to-ground missiles and surface-to-surface rockets, artillery rounds, and Stinger surface-to-air missiles, were in Poland when they were halted. Elbridge Colby, the undersecretary of defense for policy at the Pentagon, said that Defense Department would provide President Donald Trump with options to continue military aid to Ukraine that are "consistent with his goal of bringing this tragic war to an end".
&w=3840&q=100)
First Post
35 minutes ago
- First Post
India's rise as a manufacturing powerhouse making China nervous as geoeconomic advantage shifts
As India's industrial profile has risen, so too have signs of discomfort in Beijing. From delays in shipping machinery to the sudden withdrawal of skilled Chinese workers, China is deliberately trying read more China appears to be getting nervous about India's rising stature as a manufacturing hub. File image As India increasingly attracts global supply chains and manufacturing investment, tensions with China are mounting, with signs that Beijing may be responding with quiet but targeted disruptions to India's industrial ambitions. From electronics to toys, India's growing manufacturing base is drawing international interest, including from companies seeking to reduce their reliance on China. At the same time, Indian authorities and industry insiders report signs of economic pushback from Beijing: from delays in shipping machinery to the sudden withdrawal of skilled Chinese workers. STORY CONTINUES BELOW THIS AD India gains from supply chain realignment India has emerged as a key beneficiary of global efforts to diversify production lines away from China. Several international toy manufacturers, including Italy's Dream Plast, Microplast and Incas, shifted part of their operations to India last year. The result has been a sharp increase in Indian toy exports. The Indian government's $2 billion Production-Linked Incentive (PLI) scheme has also played a major role in luring global players. Earlier this year, Taiwanese electronics giant Asus began assembly operations in Manesar in partnership with VVDN Technologies. HP joined hands with India's Dixon Technologies to produce laptops and personal computers locally. Following the United States' decision in April to impose additional tariffs on Chinese imports, even Chinese companies began seeking out Indian suppliers to fulfil American orders. At the Canton Fair in Guangzhou, Indian exporters reported being approached by Chinese firms offering commission-based deals to re-route their products through India. Machinery delays and worker pullouts As India's industrial profile has risen, so too have signs of discomfort in Beijing. Indian government officials and companies have pointed to apparent Chinese efforts to slow down the delivery of crucial equipment needed for electronics manufacturing. In January, India's Secretary of Electronics and Information Technology, S Krishnan, said the government had received feedback from manufacturers, including Apple supplier Foxconn, about delays in the shipment of capital equipment from China. According to industry sources, the machinery had been held up at Chinese ports for several months without formal explanation. While no official restrictions have been announced by China, Krishnan acknowledged the possibility that these holdups could be the result of informal directives from Chinese authorities. Further complicating matters, Foxconn repatriated several hundred Chinese engineers and technicians from its iPhone assembly units in southern India. Though Foxconn and Apple notified Indian officials, the move came without a clear explanation. The timing, officials said, suggested that it may have been more than a routine operational adjustment. Rare earths and regulatory squeeze In April, China introduced tighter export controls on rare earth magnets, materials essential for electric vehicles and electronics. The new rules require exporters to obtain government licences and provide detailed end-use certificates before shipments are approved. India, which imported 460 tons of rare earth magnets in the previous financial year, almost all from China, had planned to increase imports to 700 tons this year. The restrictions are likely to significantly impact India's auto sector, which is dependent on these components for electric mobility and other high-tech applications. STORY CONTINUES BELOW THIS AD While the export curbs were officially described as part of China's broader response to US trade measures, analysts believe India is among the countries likely to be caught in the crossfire. Silent sanctions and the race for talent Most recently, Beijing has reportedly instructed local governments and regulatory agencies to quietly discourage the outflow of advanced technology and technical talent to countries like India and Vietnam. According to Bloomberg News, the policy has not been publicly announced, but has been interpreted in Indian policy circles as a form of 'silent sanction'. These measures appear designed to restrict the mobility of both tools and talent essential for complex manufacturing– sectors in which India is beginning to position itself as a competitor. As global manufacturers diversify and India gains momentum, Beijing's unease is becoming harder to ignore. The geoeconomic advantage, long held by China, may be slowly shifting across the Himalayas.
