ASIC’s Moneysmart has convened a roundtable of influential voices to address the need for superannuation funds to enhance services, transparency and access to information to better engage millennials.
The roundtable featured prominent Australians from financial advice, research and content creation, all of whom agreed that the current approach to superannuation was outdated and failed to resonate with millennials, the largest generation in the workforce.
Panellists included ASIC commissioner Simone Constant, 'She’s on the money' host Victoria Devine, financial adviser Andrew Dunbar, financial content creator Queenie Tan, finance journalist Effie Zahos and RMIT Associate Professor Dr Angel Zhong.
New research from ASIC’s Moneysmart showed that nearly half (48%) of millennials surveyed do not feel knowledgeable about maximising their super. Despite entering the workforce with compulsory superannuation, millennials are less engaged with their super compared to previous generations, highlighting a significant transparency gap.
Demanding better services
Speaking at the event, ASIC commissioner Simone Constant urged millennials to view themselves as customers who could demand better services from their super funds.
"I question whether super fund members receive the same level of clarity about what is happening with their super compared to the minute-by-minute access you get from other banking and financial services apps."
The panellists emphasised that super funds must evolve to maintain the trust of millennials, with clearer communication and easier access to tools being key priorities.
‘From an investor psychology standpoint, when we as consumers see complicated things, our attention is shifted because we only have so much mental bandwidth. Super funds need to avoid jargon and use relatable examples so people can proactively engage,’ RMIT Associate Professor Dr Angel Zhong said.
More accountability
The panel called for more accountability from the industry and for it to highlight the importance of easy access to tools and calculators as well as goal-setting information
“As an industry, we could do a much better job of making super tangible for people. We need to show people where their money is invested. Make it less about 'superannuation', more about tangible investments," Andrew Dunbar said.
“Superannuation calculators help people connect with their super. They can help show people the lifestyle they could be living, as well as helping to track progress and see how changes with contributions can have an impact.”
Strategic priorities
Improved retirement outcomes and enhanced member services are among ASIC’s five strategic priorities for 2024-28.
Moneysmart provides free tools and information to assist consumers in planning for their financial future.
As the cost of living rises, millennials are managing various financial responsibilities, such as mortgages and family commitments. However, panellists concurred that superannuation is one area where millennials can exert control without incurring extra financial pressure.
“We need to shift the mindset from seeing super as competing with our immediate financial goals to appreciating it as an essential part of our overall financial journey,’ Effie Zahos added. “You don’t have to contribute extra to your super to boost your returns; just give it some extra time to make sure it’s working for you.”
ASIC’s Moneysmart will launch a consumer awareness campaign to encourage millennials to engage with their super, illustrating the long-term benefits of consistent contributions.
“Millennials are willing to plan and engage with data for their long-term physical wellbeing and health. Now is the time to see millennials engage in the same way with their long-term financial health through their super. The tools and information on ASIC’s Moneysmart website are a great place to start for anyone who is keen to take small steps that compound over time and achieve their future goals,” Constant said.
There is around $2.7 trillion in superannuation in Australia.
Setting up millennials for super success