Aussies remain ‘concerningly apathetic’ towards super

7 November 2023

| By Jasmine Siljic |

Fund members are lacking financial literacy regarding their superannuation nest egg, with a majority of Australians having never updated their super investment allocations.

A survey of more than 2,000 Australians conducted by Mozo, a financial comparison site, has highlighted members’ ‘set and forget’ mindset towards their super.

The majority of those surveyed (68 per cent) have never changed the investment allocation of their super account, despite members at different life stages requiring specific risk appetites.

“Super is one of the most elusive personal finance products to manage, as although it technically belongs to you, you can’t access it until retirement age,” remarked Rachel Wastell, money expert at Mozo.

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“This is why taking the reins on what you can control, such as investment allocations, is important to consider when aiming to optimise your super returns.”

One in five Australians have never changed anything about their super, while 15 per cent were unaware about what type of fund their retirement savings were being held in.

Moreover, 4 per cent of respondents did not understand what the terms industry super funds, retail super funds and self-managed super funds (SMSF) meant.

Wastell continued: “A number of Australians are concerningly apathetic about it, but checking your super fund on a regular basis is the only way to ensure you don’t cheat the older version of you out of a bigger nest egg.

“By taking a closer look at how super works and the elements involved, there’s a huge opportunity for Australians to improve their retirement position.”

The money expert encouraged members who signalled low financial literacy to begin engaging with and researching their fund. This includes regularly reviewing your investment allocations, comparing fees and checking your fund’s performance.

“Conversely, it’s also vital to review your super as you approach retirement, because you no longer have time to recover from any investment losses,” she added.

While many Australians use this ‘set and forget’ approach, particularly Australians far from retirement age, Wastell recognised the risk of missing out on greater returns or unintentionally paying higher fees than necessary.

Research from Finder last month also revealed that 23 per cent of Australians, equivalent to around 4.6 million people, admitted they will have insufficient funds for a comfortable retirement.

“It can be a sad case of ‘too little too late’ for many who realise that by the time they reach retirement age, their super balance will fall well short of the amount of money they will need,” said Sarah Megginson, Finder’s money expert.

AUTHOR

Jasmine Siljic

Jasmine Siljic is a cadet journalist at Money Management and Super Review. Prior to joining MM and SR, she also worked across other Momentum Media brands as an intern. Jasmine previously completed an internship at Mamamia news. She is currently studying a Bachelor of Media and Communications at Macquarie University.

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