Super across generations

2 October 2024

AustralianSuper’s latest research into how people feel about the superannuation system finds that Australians overwhelmingly see the benefit of super.

The Superannuation Across Generations (SAG) survey¹ has found a high level of support across all generations, with 87% saying they believe in the value of the superannuation system in helping Australians save for their retirement.

How different generations see super

The SAG survey found that Gen Z are savvy super supporters, with the young generation being the second biggest champions of the super system (89%) after Baby Boomers (93%). The Silent Generation (87%), Gen X (84%) and Millennials (83%) are not far behind.

Could Australians save for their retirement without super?

Only one-third (32%) of Australians believe they would be able to save for their retirement if compulsory super wasn’t legislated, according to the survey.

A third of Millennial (33%) and Gen X (32%) respondents, as well as 1 in 5 Boomers - who are the closest to retirement age - would have between zero and $10,000 saved. And alarmingly, 15% of Australians reported they would have no retirement savings at all if they didn’t have super.

With cost-of-living pressures and Australians living longer and healthier lives, saving enough to retire comfortably according to The Association of Superannuation Funds of Australia (ASFA) $595,000 for a single, and $690,000² for a couple would be a challenge for many.

How engaged are Australians with their super?

Australians are now much more engaged with their super than in the past, with more than one-third of Australians checking their super balance at least monthly. In fact, Australians say they monitor their super balance more often than their utility bills, insurance premiums or entertainment subscriptions. This increased attention reflects a growing understanding of super’s value in providing financial security.

However, despite an increase in checking balances, two-thirds of Australians compare their super fund less than once a year and a quarter admitted they’ve never done a comparison.

So, while it’s clear many Australians recognise the importance of super, they could also benefit from checking they’re with a fund with strong long-term performance and low fees.

How important is super to Australians’ retirement?

The SAG survey revealed that 1 in 2 Australians believe that super will be their main source of retirement income and 58% report that their super is either their largest or second-largest financial asset.

75% of Millennials rank their super as their third largest asset or higher, showing its importance to their financial security.