People remain concerned about the impact of the sharemarkets on superannuation, but many still fail to see a link between the two.
Sharemarket volatility is diminishing people's confidence in superannuation, according to the latest Mercer Superannuation Sentiment Index.
Around 55 per cent of Australians surveyed remained worried about the impact of sharemarket volatility on their superannuation account balances.
The index found people's sentiment towards superannuation declined to rating of 37 out of 100, which compared to a rating of 42 a year earlier.
People, however, are still failing to understand the link between the sharemarket and their superannuation, the research revealed.
The index found 29 per cent of people rated their understanding of how sharemarket movements can affect their superannuation balance as either non-existent or minimal at best.
"There has been a growing level of awareness among people that their superannuation does invest in the sharemarket. It has improved since we conducted the survey in June 2008," Mercer partner Heather Dawson said.
"This is a real opportunity for superannuation funds and the industry to really play a role in educating people about their superannuation and the sharemarkets."
Dawson said people are keen to learn more, with 17 per cent of Australians rating their knowledge of superannuation as strong and 55 per cent aspiring to that level.
The index showed Australians' trust in superannuation declined with only 41 per cent rating their superannuation as trustworthy, down from 44 per cent in June 2009 and 52 per cent in December 2008.
The impact of fees on superannuation balances were not a big concern for people, with 8 per cent of people rating fees as an issue.
The top concerns people had about their superannuation were loss in value, not having enough funds for retirement, and low growth and returns, according to the Mercer research.
Mercer's index is based on an online survey of 1033 people in full-time jobs between the ages of 25 and 65 years. The survey was conducted in December 2009.
The research has been conducted by Mercer every six months since June 2008.
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