Young Aussies super-unaware
Many young Australians remain unaware of the basics of superannuation, with almost two thirds in the dark on the age of super access, and the definition of investment options.
That was the finding of a study by the Centre for International Finance and Regulation (CIFR), which found super members aged 25-34 have very low knowledge on the basics of super.
The online survey of 994 respondents found young Australians tend to avoid professional advice on super and other financial areas, instead looking to family and friends to have these conversations.
But instead of focusing on super, they tend to talk about mortgages and other loans.
"At the risk of overgeneralising respondent behaviour, young adults appear to be unengaged by and uninterested in their superannuation accounts or retirement," the University of Melbourne's Professor Ian Ramsay said.
"At the same time, their attitudes towards superannuation and retirement planning could best be described as worried and sceptical."
More than one third said they were frustrated, and have no control or knowledge, which act as barriers to retirement planning. Almost half (42 per cent) of male respondents mentioned these issues.
Only one third thinks they are well informed about super, while most are not confident about retirement planning or the outlook for retirement, with only 6.5 per cent saying they had a retirement plan.
The study found only one-third read all or most of their periodic statements, while most pay attention to balance, fees and charges. Only one third think reading a periodic statement is easy.
Those who had studied an area relevant to finance or commerce had better super knowledge, while males over-estimated their knowledge of super.
AUTHOR
Malavika Santhebennur
Recommended for you
AMP is to launch a digital advice service to provide retirement advice to members of its AMP Super Fund, in partnership with Bravura Solutions.
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
The second tranche of DBFO reforms has received strong support from superannuation funds and insurers, with a new class of advisers aimed to support Australians with their retirement planning.
