Over a quarter of members not engaging with funds: AMP

Widespread member disengagement is having a detrimental impact on retirement confidence, AMP research has found.

A survey of 2,000 Australians, conducted by independent research company Dynata, has revealed that engagement with superannuation funds remains low, according to AMP Super.

The research found that almost half of Australians check their accounts only once or twice a year - while a quarter have never engaged with their fund at all. Meanwhile, 27 per cent of respondents were either unaware of who their provider was or had never interacted with them.

These fresh insights underscore previous research by the super fund, which found only half of Australians are confident about their retirement.

AMP Super's director of growth and customer service, Julie Slapp, said a key concern is that this lack of engagement results in customers being unaware of available assistance - “support that could transform their quality of life in retirement”.

“Small steps – like checking your fund details or talking to your provider – can build confidence and unlock the full benefits of compounding returns,” Slapp said.

Slapp explained that adding as little as an extra $20 a week into super can grow to around $98k over 30 years through compounding, yet more than half of Australians under 40 “don’t understand the concept”.

In particular, she highlighted the low uptake and awareness of intra-fund advice, a service offered by some super funds to their members at no additional charge to assist them in maximising their superannuation outcomes within the fund.

Examples of this advice include optimising contribution, investment, and transition-to-retirement strategies.

Moreover, only one in ten Australians know that this service exists - dropping to just 7 per cent among those aged 50 to 64. This is despite 70 per cent saying they would use it if they knew it was available.

“[We] strongly encourage Australians to take full advantage of intra-fund and digital financial advice, often provided at no extra cost by super funds – the guidance can be transformational,” she said.

Additionally, AMP found that knowledge of personal finance is seldom shared across generations, which can have adverse impacts on the confidence and understanding of younger Australians.

Over 80 per cent of Australians aged 50 and above reported that their parents did not discuss or share lessons on saving or retirement while 3 in 4 of those in the 50-64 age bracket also said they wished they’d started saving earlier.

“We know that money is often, and understandably, a taboo topic within families,” Slapp said.

“But shared learnings – especially from those already in retirement – can make a huge difference to future financial wellbeing.”

Simultaneously, 94 per cent respondents said they want financial literacy taught in schools, indicating that while learning at home is an important step, school-based teaching is widely considered essential.

Overall, to boost Australians' confidence in their retirement, Slapp outlined three straightforward actions: routinely logging in to check their superannuation fund, inquiring about intra-fund advice, and initiating discussions about money at home.

“It takes hardly any time to review your fund online – and that small step could make a meaningful difference to your retirement outcome.”