Recent research from consulting and advisory firm Deloitte has revealed generations X and Y will become the dominant superannuation customers in the next 20 years.
"We stand on the edge of a massive shift in the ownership of super assets," Deloitte partner Michael Monaghan said.
In 2008, 47 per cent of all super assets were held by the baby boomer generation, but according to Deloitte research, this group would only represent 13 per cent in 2028.
Deloitte figures showed that by 2013, boomers would hold 44 per cent of all superannuation assets, while generation X would hold 49 per cent.
In the next 20 years, generations X and Y will further increase their superannuation holdings and by 2028 they will hold 84 per cent of all assets.
"This inter-generational change that is about to sweep the superannuation industry holds fundamental implications for funds, planners and for government policy. This needs to be addressed," the Deloitte report said.
Monaghan said the change in ownership had huge implications for attracting and retaining superannuation fund members.
Advice in particular was one area Monaghan said needed to change to cater for the change in the make-up of fund members.
"At the moment the system is being driven by financial planners who are heavily focused on the boomers and not X and Y," he said.
"The fundamental finding from the survey is that we need a more efficient, cheaper and online system of advice."
REST Superannuation chief executive Damian Hill said a huge proportion of REST members who took up advice were under 30.
"A lot of our resources go to trying to connect with them and we're shortly going to launch some new education material that will be more interactive," Hill said.
Some funds are also revamping products so they cater better to generations X and Y.
AMP Financial Services recently launched a simple, commission-free superannuation product targeting younger investors.
The Flexible Lifetime Super Easy (FL Super Easy) targets customers who have an annual income of less than $100,000, have less complex superannuation needs and are less likely to seek financial advice.
"AMP has developed FL Super Easy to meet the specific needs of a segment of the market that we have not focused on in recent times. It fills a gap in relevance to younger Australians," AMP personal wealth management director Andrew Hobern said.
And Monaghan said he believed it was a gap funds would increasingly have to start filling if they wanted to remain relevant.
"The challenge for the superannuation industry is to ensure that younger generations are engaged early on in their working life so that they can make informed and educated decisions, and ultimately and adequately provide for their future retirement," he said.
