Aussies trade super for ‘flashy’ investments

Yasmine Raso

Senior Journalist, Financial Newswire

10 January 2023

Australians have been warned to avoid neglecting their superannuation as an asset in favour of more popular investment options such as cryptocurrency, non-fungible tokens (NFTs) and exchange traded funds (ETFs).

This comes after a survey of 2,000 Australians from superannuation fund, Equip, found the COVID-19 pandemic had encouraged people to invest more adventurously, with 20 per cent investing in shares, ETFs, NFTs, crypto, super or other products for the first time, while 14 per cent increased the amount they invest since the pandemic.

Scott Cameron, Equip chief executive, said the data showed there were “gaping holes” in general knowledge and awareness of how to best position oneself for retirement with superannuation.

“While more investment options are emerging, superannuation remains one of the most important financial assets,” he said.

“It’s concerning that so many Australians have no idea how much they’ve actually saved after years of hard work.

“Your super balance will shape your retirement years and the type of lifestyle possible, so it’s important to keep a close eye on its progress not just towards the end of your working life, but throughout.

“Through this research we’re seeing that there’s been a huge spike in investing since the pandemic. Australians are clearly eager to educate themselves on how to boost their savings and set themselves up for a comfortable future or prepare for the unexpected.”

The figures revealed three obvious categories regarding superannuation knowledge, with 28 per cent of survey respondents saying they had “no idea” how much super they had, 37 per cent said they knew the “ballpark” amount and 35 per cent said they knew but only “to the nearest thousand”.

“We’re entering a new age of investing, with new products like cryptocurrency and NFTs capturing the public imagination,” Cameron said.

“But this shouldn’t be to the detriment of tried and tested investment products, like super.

“Our concern is Australians are running before they can walk. Think about getting on top of your superannuation before exploring new, and potentially riskier, investment alternatives.”