Only 70% of Baby Boomers are confident in making decisions about their superannuation, according to a new survey by Super Consumers Australia.
That鈥檚 despite a confidence rate 19 percentage points higher than their Generation Z counterparts, and a 31 percentage point higher level of engagement with their superannuation.
The ‘Your Say on Super’ survey is a nationally representative survey of almost 5000 consumers of various generations.
CEO of Super Consumers Australia Xavier O鈥橦alloran says the findings highlight the important differences in the needs and milestones of each generation when it comes to super, but that each stage is important.聽
He says missing these key moments and steps can be costly come retirement time.
鈥淓ach generation has unique challenges ahead for retirement, but no matter what generation you are, there are things you can do right now with your superannuation to set yourself up for the future,鈥� O鈥橦alloran says.
The gap between engagement and confidence was significant between generations.
Generation Z
Of the youngest generation in the workforce, the survey found only 51% had engaged with their superannuation at all. Results show that 21% of Gen Zs did not know that employers are legally required to pay their employees superannuation.
鈥淥ur guidance for Gen Z is simply to log in to your superannuation and get to know your account,鈥� says O鈥橦alloran.
鈥淚t鈥檒l be with you for a while, so make sure the basics are right 鈥� that your employer is paying your superannuation properly and all of your details are accurate.鈥澛�
Of the Millennials surveyed, 62% had engaged with their super, but only 52% felt confident making a decision.
Those with young families are being urged to check their super accounts to make sure their needs are reflected. The survey found 57% of Millennials did not know that superannuation funds automatically enrol you into their default insurance if you鈥檙e over 25 years old.
鈥淢any Gen Xers will be thinking about retirement, but still have time to make a difference in their super balances,鈥� O鈥橦alloran says.
鈥淔igure out your retirement target 鈥� the amount you need for a comfortable lifestyle in retirement. Then check that this lines up with the income you are likely to receive from your superannuation and the Age Pension.鈥�
Super Consumers urge those of the Boomer generation and older to make a binding death benefit nomination, so they can control where their super goes after they die.
鈥淥ne of the most heartbreaking things we see is the struggles families have dealing with a family member鈥檚 superannuation while grieving,鈥� says O鈥橦alloran.
For all generations, ASIC鈥檚 Moneysmart has further resources, calculators and information to help you engage with your superannuation.
But O鈥橦alloran says more needs to be done to educate Australians about superannuation, including more funding for the Moneysmart resource and broadscale awareness campaigns.
鈥淭he superannuation engagement gap between Boomers and Gen Z shows the government and the superannuation industry need to do a lot more to educate and empower people,鈥� says O鈥橦alloran.
Jarni Blakkarly is an award-winning Senior Investigative Journalist at 糖心Vlog. Jarni has worked for news organisations such as SBS, Reuters, Al Jazeera English, ABC 730, Radio National, BBC World Service and Deutsche Welle.
Jarni won the Walkley Foundation's young journalist of the year student category award in 2016 and was the recipient of a Melbourne Press Club Michael Gordon fellowship in 2022. In 2023 he was a highly commended finalist in the Quill Awards and a winner at the 2024 Excellence in Civil Liberties journalism awards. In 2024 he was elected to serve on the Federal Council (National Media Section) of the MEAA. Jarni has a Bachelor of Communications (Journalism) from the Royal Melbourne Institute of Technology (RMIT).
Jarni Blakkarly is an award-winning Senior Investigative Journalist at 糖心Vlog. Jarni has worked for news organisations such as SBS, Reuters, Al Jazeera English, ABC 730, Radio National, BBC World Service and Deutsche Welle.
Jarni won the Walkley Foundation's young journalist of the year student category award in 2016 and was the recipient of a Melbourne Press Club Michael Gordon fellowship in 2022. In 2023 he was a highly commended finalist in the Quill Awards and a winner at the 2024 Excellence in Civil Liberties journalism awards. In 2024 he was elected to serve on the Federal Council (National Media Section) of the MEAA. Jarni has a Bachelor of Communications (Journalism) from the Royal Melbourne Institute of Technology (RMIT).
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