‘Wake-up call’: Australians lack confidence to
make choices about their super

• One in two Australians are not engaged with their super  
• Most Australians are unsure how their super performed last year 
• Those who receive advice are twice as likely to know how to manage their super effectively 

9 September 2024 A significant number of Australians don’t feel confident making decisions about their superannuation, despite appreciating the importance of choosing the right option, according to new research from Colonial First State. 

Based on a survey of more than 2000 Australian consumers who hold a super account, the research found that half the nation (51%) are disengaged with their super and have it set on autopilot. 

Confusion and uncertainty are the core drivers of this national disengagement, with two in five Australians admitting they find superannuation confusing and the majority (60%) unsure how their super performed last year.  

More than one in three Australians (37%) say that their super doesn’t feel like their money. This jumps to 49% for those under the age of 40.  

Colonial First State Superannuation CEO Kelly Power said the findings are a wake-up call for the industry.  

“Australia is the envy of the world for its superannuation system, which manages almost $4 trillion on behalf of millions of Australians. For so many people to feel confused, uncertain and disengaged with their own super is a wake-up call,” Ms Power said.  

“As an industry we need to do more to demystify super and drive engagement so that more Australians feel confident making decisions about their financial future.” 

Seven in 10 Australians recognise that staying on top of their super is key to growing wealth and two in three (65%) acknowledge that they need to actively choose the right options to get the most out of their super.  

However, confusion over investment performance is preventing many from making decisions. Two in five say they get stuck when trying to compare the performance of super funds.  

This confusion is creating inertia: almost half of all Australians (44%) don’t regularly monitor their super’s performance and more than a third (36%) rarely check their balance.  

“In a year where the difference between the top performing MySuper fund and the worst was more than 5%, knowing how to compare your fund with others is essential.” 

“CFS is committed to making it easier for Australians to make informed decisions about their own money.  That’s why we support a vibrant and growing advice sector. We want to see more Australians benefiting from access to advice and believe government reforms should make it easier for those who need advice the most to be able to access it,” she said.  

“We know that people with higher financial literacy are twice as likely to feel positive about their financial future. And those who receive advice are twice as likely to know how to manage their super effectively. 

“Even though retirement may seem far away, your super is your money and being actively involved in how it is managed will go a long way to helping you build wealth and achieve your retirement goals, whatever they may be.” 

CFS has an internal member education team dedicated to providing members with the knowledge and resources needed to manage and understand their super and investments.  

A new digital advice offering compliments the recently improved CFS website and mobile applications to make it easier for members to engage with CFS, find what they need, and make informed decisions through a range of tools and educational content.