Financial worries overshadowed by confidence in super

Despite current cost pressures, the majority of Australians are confident about their financial future because of their superannuation, according to a recent consumer survey. 

Commissioned by the Super Members Council (SMC), the survey of 1,151 people found some 45 per cent are fairly confident and 15 per cent are very confident that the super system works in the best interests of everyday Australians.

Over half (58 per cent) of all respondents with super and 54 per cent of respondents with current financial difficulties said super gives them confidence about their financial wellbeing. 

Georgia Brumby, executive general manager of advocacy at the SMC, observed that super is being viewed as a “lifeboat through today’s economically turbulent waters.”

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“Our universal and world-class super system has provided economic security, financial flexibility and peace of mind to millions of Australians,” Ms Brumby said.

“If the policy settings remain stable and changes are made only in the members’ best interests, super can go on delivering for generations to come.”

The survey found profit-to-member funds are the most trusted of Australia’s financial institutions to act in members’ best financial interests, followed by the Fair Work Commission and regulators.

Meanwhile, financial advisers and the big four banks were among the least trusted institutions. 

The findings also revealed that over half (55 per cent) of Australians believe super is a low-cost way to build savings and that it has performed strongly over the long term. In contrast, some 17 per cent and 14 per cent respectively disagreed with the sentiment. 

While noting that confidence and trust in the super system remain generally high, Ms Brumby had a call to action for members who are not as engaged with their fund.  

“Previous research shows those who take an interest in super are happier with their fund’s investment performance, so we would urge all Australians to check in with their fund to make sure they are getting the most they can from their super,” she said.

“Life is busy and retirement for many is decade’s away, but spending some time now looking into super could really pay off in the long term.” 

A recent survey by Mozo, a financial comparison site, also highlighted members’ ‘set and forget’ mindset towards their super.

It observed fund members are lacking financial literacy regarding their superannuation nest egg, with the majority of Australians having never updated their super investment allocations.

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.  

Rachel Wastell, money expert at Mozo, said: “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.”