A new Association of Superannuation Funds of Australia (ASFA) survey of Australians aged under 29 has revealed a worrying lack of knowledge about superannuation.
As many as 40 per cent of younger Australians have “no idea” what their super balance is, and a further 16 per cent reported having a “vague idea”.
Australians aged under 29 also tend to underestimate the amount of money they will need in retirement, ASFA found.
“Young people expect on average they will need $625,000 while those aged 60 years and over staring down retirement expect on average that they will need nearly $1 million,” said ASFA.
Multiple accounts continue to damage the retirement savings of younger Australians, according to the research.
More than 30 per cent of Australians aged 18-25 have more than one super account, and 10 per cent have three or more accounts.
For those aged 26-30, nearly 20 per cent of Australians have three or more accounts, ASFA found.
But there is some good news, says ASFA chief executive Martin Fahy – 6 per cent of Australians aged under 29 are checking their super accounts daily.
“It’s a habit the super industry is keen to foster to help young people set themselves up for retirement,” he said.
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