Young Aussies are being made to choose: super or chasing their dreams—what would you do?
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Running your own business can offer freedom and flexibility—but it often comes at a hidden cost.
While some Aussies are chasing their entrepreneurial dreams, they could be quietly setting themselves up for a difficult retirement.
One woman’s story reveals just how easy it is for super contributions to fall by the wayside.
Michelle had poured everything into her small business—every spare dollar, every ounce of energy—and for now, that left very little room for thinking about retirement.
‘Any money I earn, I’m just reinvesting it back into the business,’ she shared.
The 38-year-old mum of two launched her e-commerce store, Young Wonderer, three years ago with her twin sister Jennifer. It started as a side hustle while she worked full-time as a creative manager for a cosmetic company.
But when she was made redundant during maternity leave, what could’ve been a devastating blow turned into something she called a ‘dream come true’.
It gave her the chance to finally focus on Young Wonderer full-time. The store specialises in high-contrast black and white books for babies and sensory toys for newborns—products she believed in deeply.
But while the flexibility of running her own business suited her growing family, Michelle quickly realised she had lost the protections that came with her old corporate role.
That included not just a regular wage, but employer-paid super contributions.
‘I’m just about to start paying myself, which is exciting,’ she said.
‘But I need to prioritise the needs of the business and cash flow… and, unfortunately, I guess the future does take a bit of a backseat.’
According to new research from AMP, Michelle’s situation is far from unique. The bank warned of a retirement ‘crisis hidden in plain sight’ as sole traders and small business owners—many of whom employ four or fewer staff—put every cent back into keeping their ventures afloat.
Just 55 per cent of those operating micro or small businesses were regularly paying into their superannuation. And that figure dropped further for sole traders in rural areas or those who had only been in business between one to three years.
AMP’s John Arnott explained that while it was ‘understandable that many small business owners prioritise reinvesting in their business’, the trade-off was long-term security.
‘It’s not always clear where to begin,’ he said, adding that Australia’s super system could be confusing, especially for the self-employed.
Michelle admitted she hadn’t checked her super balance in some time.
‘I’m still very much in the let’s just get a profit phase and trying to pay all the bills,’ she said.
And while she wasn’t too stressed about her super at the moment, she conceded it would become more of a concern if she hadn’t addressed it in a year’s time.
Recent data from the Commonwealth Bank supported this worrying trend, showing that one-third of Aussie workers didn’t know how much they had in super—even though it remained the top long-term savings goal for most.
In the broader workforce, employers are now required to send 12 per cent of a worker’s wage to their nominated super fund under the Super Guarantee. This covers about 90 per cent of Australians—but leaves the remaining chunk, including the self-employed, to make their own contributions.
Arnott urged business owners to ‘strike the right balance’ between covering daily costs and investing in their retirement.
‘Time is precious, and the admin and mental load are very real,’ he said.
‘Resources like the ATO’s website, your banking app, can help automate processes and provide valuable cash flow insights, visibility and control.’
AMP demonstrated the power of long-term saving with a simple example: if someone contributed just $100 a week from the age of 30, they could end up with $500,000 by the time they turned 65—assuming a six per cent rate of return.
For Michelle, she remained hopeful that the business would soon reach the $75,000 annual income threshold that would require her to register for GST.
Once that milestone was crossed, she planned to start directing more money toward her super.
This short video breaks down exactly when solo small‑business operators need to contribute to their super and highlights the risks of falling behind—just like Michelle did.
Curious how your business setup could affect your retirement? Watch and see what applies to you.
Source: Youtube/Guided Investor
While running your own business can be rewarding, the trade-offs—like missing out on years of super contributions—can quietly build into major concerns later in life.
Have you ever had to choose between your business and your future financial security? Let us know in the comments.
We’ve shared a few stories before that tie directly into this theme of preparing for tomorrow—even when you’re busy with life today. Check out these related pieces that senior Australians may find reassuring and useful:
Read more:
While some Aussies are chasing their entrepreneurial dreams, they could be quietly setting themselves up for a difficult retirement.
One woman’s story reveals just how easy it is for super contributions to fall by the wayside.
‘Any money I earn, I’m just reinvesting it back into the business,’ she shared.
The 38-year-old mum of two launched her e-commerce store, Young Wonderer, three years ago with her twin sister Jennifer. It started as a side hustle while she worked full-time as a creative manager for a cosmetic company.
Small business dream delays super contributions plan. Image source: Pexels/Anna Shvets
But when she was made redundant during maternity leave, what could’ve been a devastating blow turned into something she called a ‘dream come true’.
It gave her the chance to finally focus on Young Wonderer full-time. The store specialises in high-contrast black and white books for babies and sensory toys for newborns—products she believed in deeply.
But while the flexibility of running her own business suited her growing family, Michelle quickly realised she had lost the protections that came with her old corporate role.
That included not just a regular wage, but employer-paid super contributions.
‘I’m just about to start paying myself, which is exciting,’ she said.
‘But I need to prioritise the needs of the business and cash flow… and, unfortunately, I guess the future does take a bit of a backseat.’
According to new research from AMP, Michelle’s situation is far from unique. The bank warned of a retirement ‘crisis hidden in plain sight’ as sole traders and small business owners—many of whom employ four or fewer staff—put every cent back into keeping their ventures afloat.
Just 55 per cent of those operating micro or small businesses were regularly paying into their superannuation. And that figure dropped further for sole traders in rural areas or those who had only been in business between one to three years.
AMP’s John Arnott explained that while it was ‘understandable that many small business owners prioritise reinvesting in their business’, the trade-off was long-term security.
‘It’s not always clear where to begin,’ he said, adding that Australia’s super system could be confusing, especially for the self-employed.
Michelle admitted she hadn’t checked her super balance in some time.
‘I’m still very much in the let’s just get a profit phase and trying to pay all the bills,’ she said.
And while she wasn’t too stressed about her super at the moment, she conceded it would become more of a concern if she hadn’t addressed it in a year’s time.
Recent data from the Commonwealth Bank supported this worrying trend, showing that one-third of Aussie workers didn’t know how much they had in super—even though it remained the top long-term savings goal for most.
In the broader workforce, employers are now required to send 12 per cent of a worker’s wage to their nominated super fund under the Super Guarantee. This covers about 90 per cent of Australians—but leaves the remaining chunk, including the self-employed, to make their own contributions.
Arnott urged business owners to ‘strike the right balance’ between covering daily costs and investing in their retirement.
‘Time is precious, and the admin and mental load are very real,’ he said.
‘Resources like the ATO’s website, your banking app, can help automate processes and provide valuable cash flow insights, visibility and control.’
AMP demonstrated the power of long-term saving with a simple example: if someone contributed just $100 a week from the age of 30, they could end up with $500,000 by the time they turned 65—assuming a six per cent rate of return.
For Michelle, she remained hopeful that the business would soon reach the $75,000 annual income threshold that would require her to register for GST.
Once that milestone was crossed, she planned to start directing more money toward her super.
This short video breaks down exactly when solo small‑business operators need to contribute to their super and highlights the risks of falling behind—just like Michelle did.
Curious how your business setup could affect your retirement? Watch and see what applies to you.
Source: Youtube/Guided Investor
While running your own business can be rewarding, the trade-offs—like missing out on years of super contributions—can quietly build into major concerns later in life.
Have you ever had to choose between your business and your future financial security? Let us know in the comments.
We’ve shared a few stories before that tie directly into this theme of preparing for tomorrow—even when you’re busy with life today. Check out these related pieces that senior Australians may find reassuring and useful:
Read more:
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