Coffee over coffers – Aussies choose a cuppa over super savings
Australians would rather spend dollars on cups of coffee and soft drinks from the local store or café than cut down and put the additional money towards investments such as superannuation, according to a national Newspoll survey commissioned by St George Bank-owned Asgard Wealth Solutions.
It showed that 66% of people aged 40-64 who work full or part-time buy at least one coffee or drink a week from cafés or convenience stores. When asked how willing those respondents would be to buy one less beverage a week and to invest the money instead, 59% said they wouldn’t be prepared to cut down because the amount is so small.
Of the remaining respondents, 26% said they would be somewhat willing to buy one less drink and invest the money, while only 13% said they would be very willing as they recognised that the money saved would soon add up.
Asgard head of technical consulting, Bryan Ashenden, said that even though the average cup of coffee or soft drink only costs around $3.50, the accumulated savings from giving up one a week would build up over time and could make a difference to post-retirement income if invested in superannuation.
“Small sacrifices now could make a big difference later on – sacrificing a beverage a week now will mean an extra $2,845 in your super fund in 10 years time,” said Mr Ashenden.
“If you were to drink five cups of coffee per week and you were to save that money and place it into super, you would see an additional $45,000 in your super fund over the next 20 years.
