More than 1 in 4 Australians not engaging their super funds

AMP data released via its newly launched Retirement Confidence Pulse has shown that 27 per cent of Australians do not at all engage with their super fund, and roughly a further 50 per cent only engaged with their super fund one or twice a year.

Included in that 27 per cent is a large number of Australians who do not even know who their super fund is, according to AMP.

Overall, AMP ranks Australian’s retirement confidence at just 50 out of 100.

Moreover, just one in 10 Australians know what “intra-fund advice” is – dropping to 7 per cent among those aged 50 to 64, despite the majority saying they would use it if they knew it existed.

“Intra-fund advice is provided by leading super funds to members at no extra cost to help them optimise their super within the fund, for example, with contribution, investment and transition-to-retirement strategies,” AMP explained.

Julie Slapp, AMP Super’s director of growth and customer solutions, highlighted that these numbers demonstrate a high level of disengagement with super, as well as a lack of awareness around what help is available. This lack of knowledge leads to lower confidence in retirement.

“Small steps – like checking your fund details or talking to your provider – can build confidence and unlock the full benefits of compounding returns,” she said.

“We know that as little as an extra $20 a week put into super can grow to ~$98,000 over 30 years through compounding, yet more than half of Aussies under 40 don’t understand the concept.”

She added: “We also encourage Australians to take full advantage of intra-fund and digital financial advice, often provided at no extra cost by super funds – the guidance can be transformational.”

The research also shows that financial conversations are rarely passed down through families. More than four in five Australians over 50 said their parents never discussed or shared learnings about savings or retirement.

According to AMP, this has led to lower retirement confidence and knowledge in Australians.

“We know that money is often, and understandably, a taboo topic within families. But shared learnings – especially from those already in retirement – can make a huge difference to future financial wellbeing,” said Slapp.

However, AMP highlights that professional advice is still one of the best tools to build retirement confidence, however cost still remains a significant barrier. Despite this, AMP still encouraged Australians to engage more with their retirement savings.

“It takes hardly any time to review your fund online – and that small step could make a meaningful difference to your retirement outcome,” Slapp said.