Research from NGS Super shows a disconnect between the increasing investment appetite of Generation Z Australians and their propensity to pursue superannuation opportunities.
According to the research, almost one-third of Gen Z Australians said the pandemic encouraged them to save more, 31% said it prompted them to explore investment options such as shares in cryptocurrency, and a third were keen for advice on how to invest.
Despite these positive demand indications, two-in-five said they did not care which super fund they were with while only 15% wanted to invest more into their super.
NGS Super said this disconnect between investment appetite and interest in super could lead to a generation of Australians who would live and work for longer than ever before but may still not be as financially secure as they should be in retirement.
Laura Wright, chief executive at NGS Super said: “The pandemic has made Gen Z hungry for more financial advice and investment options, but they’re looking for short-term satisfaction and we’re increasingly seeing this generation make investment decisions based on limited information via social media”.
“Gen Z is entering the workforce in droves and we’re facing a critical moment in time to educate and engage with Gen Zs about their super to help them build a more financially secure and sustainable future.
“It might not be surprising that our Gen Z workers are focusing on shorter-term investments rather than their super, but it is concerning how much they are potentially sacrificing for their future. Super can be a very powerful tool in a young person’s investment toolkit, and it’s being disregarded.”
Employers, financial advisers, and super funds were the least popular sources of financial information for Gen Z. Free financial advice from parents was the most popular source of information for 56%, closely followed by friends at 36%.
‘Finfluencers’ (financial influencers) were the fifth most relied on source of financial advice, with one-in-four Gen Zs sourcing their information primarily from YouTube (59.9%) and Instagram (55.6%).
A further 60% of Gen Z were not aware they could access free advice from their fund.
“Our younger generations were disproportionally impacted financially by the pandemic, with as many as three-in-10 Gen Z Australians taking up the early release scheme and cashing out their retirement savings,” Wright said.