Super ‘set on autopilot’, reveals CFS research

Yasmine Raso

Senior Journalist, Financial Newswire

10 September 2024

New research from Colonial First State (CFS) is the latest to highlight the growing issue of Australians feeling disengaged from their superannuation, as members continue to report low confidence and uncertainty in their financial decisions.

Of the 2,000 Australian adults with a superannuation account surveyed, 51 per cent responded that they were “disengaged” with their super and have it “set on autopilot” primarily due to feelings of confusion and uncertainty.

Approximately 40 per cent reported finding superannuation confusing and 60 per cent were unsure of how their super performed last year.

The research unearthed a concerning statistic for the younger generation in accumulation mode, with 49 per cent of those surveyed aged under 40 years suggesting their superannuation does not feel like their money.

“Australia is the envy of the world for its superannuation system, which manages almost $4 trillion on behalf of millions of Australians. For so many people to feel confused, uncertain and disengaged with their own super is a wake-up call,” Kelly Power, Colonial First State Superannuation chief executive, said.

“As an industry we need to do more to demystify super and drive engagement so that more Australians feel confident making decisions about their financial future.”

While the survey indicated there was a high level of understanding of superannuation as the “key to growing wealth” (70 per cent) and the importance of active engagement with super options to achieve results (65 per cent), confusion still manages to outweigh confidence when it comes to making informed financial decisions.

Approximately 40 per cent of respondents said they stumble through super performance comparisons, 44 per cent don’t regularly check their super performance and 36 per cent rarely check their balance.

“In a year where the difference between the top performing MySuper fund and the worst was more than five per cent, knowing how to compare your fund with others is essential,” Power said.

“CFS is committed to making it easier for Australians to make informed decisions about their own money. That’s why we support a vibrant and growing advice sector. We want to see more Australians benefiting from access to advice and believe government reforms should make it easier for those who need advice the most to be able to access it.

“We know that people with higher financial literacy are twice as likely to feel positive about their financial future. And those who receive advice are twice as likely to know how to manage their super effectively.

“Even though retirement may seem far away, your super is your money and being actively involved in how it is managed will go a long way to helping you build wealth and achieve your retirement goals, whatever they may be.”