Super awareness campaigns not reaching Generation Y
High-profile awareness campaigns around superannuation were failing to reach Generation Y with nearly half unable to correctly explain superannuation when asked.
Almost one in five admitted they knew little about the superannuation system and one in 10 stated they were unaware of what superannuation funds they held.
The findings are part of research examining Generation Y attitudes and understanding of superannuation conducted by REST Industry Super among 1007 people aged 18-30.
REST stated that the poll showed that for Gen Y superannuation was "out of sight and out of mind; with seven out of 10 saying they rarely or never think about their super."
Of the 46 per cent who could not explain superannuation, 18.6 per cent stated it was government-funded, 10.4 per cent stated it was a work-place benefit offered by employers to boost salary and 3 per cent stated it was a low-risk personal investment strategy popular with Australians.
REST chief executive office Damian Hill said the research indicated that a back to basics approach was needed with Generation Y around superannuation, despite more than two thirds stating they held at least one superannuation fund.
"Many education campaigns assume a level of knowledge when it comes to superannuation and financial literacy generally. This research shows us that for many young Australians, we need to go back to the ABCs of super if we are to effectively engage them.
"For this generation, many of whom came of age during the GFC, there is a perhaps understandable ambivalence about financial markets, with four out of 10 of the 18 to 30-year-olds surveyed saying they have doubts about Australia's superannuation system. And only around 7 per cent say they check their account balance regularly, which means many could be paying unnecessary fees or other costs, especially if they have multiple funds.
"This lack of engagement with superannuation from Gen Y, with almost three quarters unaware of how much super they are getting, highlights how vital it is for Government and the industry to continue their efforts to educate young Australians on the importance of retirement planning."
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