The study, involving 994 young adult super fund members and commissioned by CIFR, looked at knowledge, behaviour and attitudes towards super in the 25-34 age group.
It was conducted by Professor Malcolm Anderson, Professor Martin Clark and Professor Ian Ramsay from the University of Melbourne.
Respondents completed a 75-question online survey instrument which covered demographic questions, superannuation account balance and use details, basic knowledge of the superannuation system and financial literacy, and attitudes towards superannuation, retirement planning and financial advice.
The study found that knowledge of the basic facts of superannuation is low, particularly in regard to age of access to superannuation and the definition of investment options.
Almost two thirds of respondents were unable to state the age at which they can begin to access their superannuation.
According to the research, stronger knowledge scores came from male, degree-holding, urban and high-income respondents.
Professor Ramsay said studying commerce or finance-related subjects at secondary school or university had the greatest impact in improving the knowledge scores of respondents.
This finding, he said, could “present an argument for including financial literacy as part of the curriculum for secondary education”.
Most respondents over-estimated their knowledge of superannuation, with males relatively over-confident when compared with females.
Only one third of respondents read all or most of their periodic statements, while only 6.5 per cent had a plan for retirement.
“At the risk of over-generalising respondent behaviour, young adults appear to be unengaged by and uninterested in their superannuation accounts or retirement,” said Professor Ramsay.
Superannuation was widely regarded as “not a major priority at this stage in the lives of respondents”, he added.
“At the same time, their attitudes towards superannuation and retirement planning could best be described as worried and sceptical.”
Professor Ramsay said these results indicate the need for more education and information about the benefits of superannuation, specifically tailored to the 25-34 age group.
“Information could also be targeted at those groups the study identified as having lesser knowledge about superannuation, including those in regional areas,” he said.
