Millennials more than double their share of Australia’s super savings balances
Younger generation's superannuation funds have risen at a rate almost four times the overall market growth.
New research reveals that over the last 10 years, young Australians have significantly increased their share of superannuation fund balances, growing funds at almost four times the overall market growth rate.
The statistics were released as part of the latest Roy Morgan Single Source Survey, which collects data from over 50,000 consumers and uses interviews from more than 30,000 superannuation fund members.
Millennials' share of Australian super fund balances rose from just 6.4% in September 2007 to 14.6% in September 2017, representing an increase of $226 billion and growth of 382% during the last decade.
This rate is almost four times as much as the overall market growth of 110% over the same period. For comparison, over the same period, Generation X Australians amplified their super market share by 177%.
The research found all three younger generations enjoyed increased superannuation market share in the last 10 years, including Gen X (up 8.7% to 36.2%), Millennials (up 8.2% to 14.6%) and Gen Z (up from 0% to 1.9%).
Baby Boomers lost 12.1% to 39.7% and Pre-Boomers fell 6.8% to just 7.4% market share over the same period.
Roy Morgan's survey also found that in the six months to September 2017, satisfaction with the financial performance of industry funds was 58.5%, compared to 56.9% for retail funds. Over the last 12 months, satisfaction among Australians with industry funds fell by 1.4%, while retail funds improved 0.7%.
Consumers were more satisfied with retail superannuation funds than industry funds during the first six months of 2017. Prior to this, industry funds were more popular than retail funds for more than a decade.
Rice Warner's Super Insights suggests that while Australians have access to tens of thousands of super investment options, the overwhelming majority don't utilise the full suite of choices available to them.
The latest research by Industry Super Australia found consumers ranked fees and performance as the two most important factors when selecting a super fund, well ahead of technology and ethical investment options.
It's important to start thinking about your super now, even though you may think you're too young, as the earlier you start saving towards your golden years the better retirement benefits you will be able to have.
Australia's ageing population means superannuation is a vital retirement tool. Find the fund that fits you best.