Gen Y on autopilot with super
People aged 18-30 have yet to engage with their superannuation, with high numbers of them allowing their employers to choose their fund and remaining unaware of their funds’ fees and charges.
According to research released by REST Industry Super, gathered in a survey of 1007 people aged 18-30, 53.8 per cent of those labelled Generation Y allowed their employer to chose their superannuation fund.
Eighty per cent of survey respondents also stated they were not clear on what fees were charged by their super funds.
The high levels of disengagement were also reflected in knowledge of how their superannuation was invested. Nearly 84 per cent admitted they had little or no idea how their fund had invested their superannuation.
“I doubt any 18-to-30 year-old would let his or her employer choose them a car, yet nearly half don’t take an active interest in choosing their superannuation fund, soon to be worth many times more than the average first car,” REST chief executive Damian Hill said.
The REST survey also found that around one in three read their super statements, with another one in three never reading them. A third of survey respondents were unaware of their superannuation balance.
REST stated that Generation Ys “operate on autopilot when it comes to their super” with their lack of active interest costing them money in terms of missed opportunities around co-contributions and salary sacrificing.
AUTHOR
Jason Spits
Jason has been writing on financial services since 1999 and has worked for on a number of trade media titles in both a full time and freelance capacity. He joined Money Management and Super Review in 2013 in the role of Senior Journalist.
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