Superannuation a salve in period of economic pain: SMC

Despite the economic pain facing many Australians right now, a new poll commissioned by peak industry superannuation body, the Super Members Council (SMC), has revealed that more than half believe the super system is giving them greater confidence and security in their financial well-being.

While a majority (53%) of the more than 1,100 individuals surveyed stated that they are struggling in current economic conditions (with more than 14% facing serious financial difficulties) more than half (54%) of these individuals believe that super has improved confidence in their financial wellbeing.

Only six per cent of these individuals strongly disagreed that the super sector has improved financial confidence.

Further, nearly two-thirds (60%) of those surveyed state they are confident the super system is working in the best interest of everyday Australians.

“Australians have great trust in super,” the SMC said in a statement. “The research shows people trust that super works in the best interests of members, is a low-cost way to build wealth and believe super has delivered strong long-term investment returns.”

However, not all was rosy for the super sector, with around one in three (30%) stating that they either lacked confidence or had no confidence at all in Australia’s super system.

Nevertheless, more than half (55%) agreed that super has performed strongly over the long term, with just 14% disagreeing.

Around 55% also believed super to be a low-cost way to build savings, with only 17% expressing disagreement with this sentiment.

For those in financially difficult straits, around 44% believed super to be a low-cost savings builder, with around 21% disagreeing all or in part with this sentiment.

Super Members Council Executive General Manager of Advocacy Georgia Brumby noted that while “more Australians are feeling the pinch… super is seen as a lifeboat through today’s economically turbulent waters”.

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

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

Industry, or ‘profit-to-member’ super funds rated highly among those surveyed, with around 60% stating that these funds act in members’ best financial interests – which the SMC boasted is the highest rating among Australia’s financial institutions.

Among all respondents, industry super funds, indeed, rated higher than the Fair Work Commission (at 55%), the regulators (50%), financial advisers (42%) and the big four banks (35%).

Commissioned by the recently formed SMC, the poll was conducted by Essential Research in November 2023, surveying 1,151 people across Australia, including both individuals with or without a super fund account.

The SMC, formed in late 2023 out of the merger of the now-defunct peak super sector bodies the Australian Institute of Superannuation Trustees (AIST) and Industry Super Australia (ISA), states that its core goal is to “protect and advance the interests of super fund members throughout their lives”.

The Council’s foundation funds include eight of Australia’s largest industry super funds – Australian Retirement Trust, AustralianSuper, Aware Super, Cbus Super, HESTA, Hostplus, Rest Super and UniSuper – representing more than 10 million Australians who hold more than $1.4 trillion in assets.