ASFA has called for targeted reforms to close the superannuation trust gap among culturally and linguistically diverse Australians.
The Association of Superannuation Funds of Australia (ASFA) has urged policymakers to take stronger action to close the trust and satisfaction gap among culturally and linguistically diverse (CALD) Australians, warning that lower superannuation balances and barriers to engagement risk undermining the system’s universality.
According to ASFA’s 2025 national sentiment survey, almost four in five Australians have been satisfied with their super fund’s performance and trusted their fund to make sound financial decisions.
More than 9 in 10 agreed that superannuation is essential for financial security in retirement. However, satisfaction among people from CALD backgrounds has been notably lower at 70 per cent, compared to 81 per cent for those who speak only English at home.
ASFA said the findings highlight a need for targeted policy reform and more inclusive communication.
“Many CALD individuals may not have access to plain-language or multilingual materials that clearly explain how the super system works, which in turn may reduce their confidence and trust in their fund’s performance,” the report stated.
The association’s research has drawn on HILDA data showing that non-English-speaking Australians typically have much lower superannuation balances than the broader population.
Median balances for CALD households have been about half those of non-CALD households, with lone CALD households holding $20,000 compared to $40,000, and couple households $53,500 compared to $125,000.
Lower super balances among CALD Australians reflect deeper labour market inequities, ASFA said. Many are concentrated in casual, part-time, or gig-economy roles where superannuation contributions can be irregular or entirely absent.
These employment patterns, coupled with language barriers and limited access to tailored financial information, contribute to lower engagement with the super system.
“While overall satisfaction and trust in super are strong, the fact that CALD Australians report materially lower levels of satisfaction suggests that more must be done to ensure the system works equitably for everyone,” ASFA said.
The organisation has recommended several policy measures to address these disparities, including tighter compliance to curb unpaid or underpaid super in the gig economy, inclusion of superannuation guarantee (SG) payments in the Fair Entitlements Guarantee, and expanded access to multilingual superannuation resources through platforms such as MoneySmart and the ATO.
ASFA has also urged reform of the super arrangements for temporary and migrant workers, proposing a lower tax rate on super paid to departing Pacific Australia Labour Mobility (PALM) scheme participants and allowing the ATO to remit unclaimed super directly to foreign bank accounts.
Beyond financial measures, ASFA said improving engagement will require a stronger cultural understanding of how different communities interact with the super system.
Language, cultural familiarity, and trust in financial institutions all shape people’s perceptions of their retirement savings. As a result, more outreach, education, and community-based communication could help close the trust gap.
“Measures designed to build on the strengths of the current system in regard to adequacy, equity, and universality would deliver positive outcomes for all Australians and are likely to deliver better outcomes for CALD individuals in particular,” the association said.
ASFA added that as Australia’s population continues to diversify — with more than 30 per cent of Australians now born overseas and 5.8 million speaking a language other than English at home — ensuring fair and inclusive superannuation outcomes will be vital to maintaining trust in the $3.7 trillion system.
“Superannuation is one of Australia’s greatest policy achievements,” ASFA said. “But its success depends on universality — and that means ensuring every Australian, regardless of language or background, can participate fully and confidently in the system.”
