A Parliamentary Inquiry into boosting superannuation amongst people under the age of 40 couldn't have come at a better time according to Tasmania's largest industry superannuation fund. Tasplan General Manager Neil Cassidy believes the Federal Government is absolutely right to be concerned about the savings habits of younger Australians.

"Generation Y ( born 1982 - 2000: ages 5 to 23 ) are entering the workforce at the rate of 200,000 each year." Cassidy said. " These young Australians tend to look at life differently. They face an increasing cost of living and have higher consumption expectations – without necessarily having the higher salaries to match."

"Getting young people to part with even $10 a week of take home pay will be difficult unless we begin to educate them now" Cassidy said. According to Cassidy, unless the Federal Government can engage young Australians on the subject of superannuation and retirement savings, it is in danger of losing much of the ground it has gained over the past few years. In particular, Cassidy points to those earning between $20,000 and $60,000 as a group with the capacity to save more but one which is not being sufficiently encouraged to do so.

"The Federal Government has done very well in encouraging Australians to save through initiatives like the Co - contribution scheme. The proof is a superannuation industry which has trebled in size over a decade and which is tipped to hit three trillion by the year 2030." Cassidy believes that whilst this figure is massive, it needs to be because the Federal Government will be supporting a large proportion of the cohort of 'Baby Boomers' moving into retirement over the next twenty years.

"Ironically, Focus groups that Tasplan has conducted for members under the age of 35 indicate clearly that young Australians see retirement savings as their own responsibility - they just haven't got around to making it a priority and putting a plan in place" Cassidy said.

Cassidy said the best way to encourage young people to save more money for their retirement was through a host of changes including cuts in taxes, more education and increased incentives.