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Australians switching up their super
Around 8% of Australians invest in additional superannuation contributions and were more interested in ethical investing, according to a report from Finder.
Its ‘Investing in 2021’ report said the stock market crash instigated a “flurry of panic” for super holders who worried they would lose their life savings.
“In April, Finder revealed 12% of Australians were considering changing their super fund in light of market volatility,” the report said.
“However, the market has largely recovered its losses and most diversified funds are no worse off than they were a year ago.
“In fact, now is the perfect time for Australians to increase their superannuation contributions as economic recovery will support fund growth.”
The report also found Australians had developed a growing interest in ethical investing and 29% would consider switching super funds if their provider was investing in industries they deemed unethical, and for Gen Z specifically this grew to 45%.
“Younger Australians in particular are becoming increasingly concerned with the state of the planet and are willing to boycott investing in industries that are misaligned with their values,” the report said.
“But it’s not just about the ethics. A report from the Responsible Investment Association Australasia found 62% of Australians believe ethical super funds perform better in the long term, a stark increase from 29% in 2017.
“And they aren’t necessarily wrong: Australian Ethical, for instance, has achieved a five-year annualised growth rate of 6.88% on its balanced fund, well outperforming the industry average of 5.9%.”
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