Cost of living crisis sees younger Aussies engage with super

New research commissioned by AustralianSuper found that the cost of living crisis has spurred younger Australians to engage more with their superannuation and develop an investment portfolio.

The data collected by YouGov from 1,000 Australians aged between 18 and 43 years with a superannuation account found that just under three-quarters (74 per cent) said they now have a greater interest in their superannuation due to the cost of living crisis, with one-quarter (26 per cent) also have invested in shares or other assets.

Amid financial insecurity and ongoing uncertainty, 94 per cent of those surveyed agreed that “super is crucial for financial health in retirement”, with 78 per cent also equalling engaging with their super to taking care of their physical health.

Shane Hancock, General Manager, Retirement at AustralianSuper, said the results indicated an “evolving attitude” towards superannuation and financial wellness more broadly.

“Gen Z and Millennials are not just focused on the here and now – they’re planning ahead. They recognise that engaging with their super is critical to future-proofing their finances,” he said.

“Planning for retirement might be a long way off but it’s never too early to see how small actions today can make a huge difference tomorrow, which is why we’ve developed the tools and resources to help members at any age, to feel empowered and in control of their financial future.”

User data gathered from AustralianSuper’s app also revealed that more than 600,000 Millennials and Generation Z members have used it in the past year to manage their super, while online resources such as the Super Projection Calculator have also recorded a spike in usage with Millennial use up 316 per cent in the last five years. Generation Z’s use of the online tool suite is also nearly seven times higher than it was five years ago.

“The fact that Millennials and Gen Z are embracing online planning tools shows they want to take control of their super in an accessible and informed way. We’re always listening and improving our member experience so managing your super is easier than it’s ever been,” Hancock said.