Gen Y are more in tune with their superannuation fund than Gen X, according to an ING Direct report.
The report found 41 per cent of Gen Y said they specifically chose their super fund, compared to 35.7 per cent who automatically went with their employer’s fund and 13.9 per cent who consciously decided to stay in their employer’s fund.
Only 35.3 per cent of Gen X specifically chose their fund, while over 40 per cent automatically went with their employer’s fund, and eight per cent consciously decided to stay in their employer’s fund.
“While the research shows individuals generally don’t think too much about their super, the majority of Gen X looks at their super balance at least annually, and millennials check their balance more frequently,” the report said.
“Again this debunks the myth that millennials aren’t interested in saving for retirement.”
The most attractive features for both generations were no fees, low feels, competitive investment performance, trusted brand, and simplicity.
ING Direct national partnerships manager for wealth and residential, Tim Hewson said advisers should then recommend products and services that include low and no-fee options, simple products, and to educate clients about fees and the performance of fee-based products.
