More than 30 per cent of all young people aged 18 to 25 have more than one super account, according to research by the Association of Super Funds of Australia (ASFA). This means they pay unnecessary extra fees across multiple accounts, potentially eroding savings over their working lives.
The ASFA research suggests that 40 per cent of all young people don't know where their super is, and 16 per cent only have a "vague idea".
The ASFA research suggests that 40 per cent of all young people don't know where their super is, and 16 per cent only have a "vague idea". That's not encouraging, given that constant reviews of your super is key to ensuring you have enough saved for retirement.
What do young people think about super?
More than 50 per cent of young people believe super is one of the most integral parts of saving for retirement, but many believe they only need as much as $625,000 in total. People over the age of 60 have higher expectations for their spending post-work, aiming to save around $1 million.
While lots of people realise the importance of a sound super fund, almost a third are lethargic about consolidating their savings. As previously mentioned, 30 per cent of people aged 18 to 25 have more than one super account, and 10 per cent in that same age bracket have more than three! What's more, 20 per cent of people between the ages of 26 and 30 have three or more super accounts. These are all just excess costs, but some people blame not knowing where their super accounts are for their slow reactions to consolidate their savings.
How can you check where your super is?
The government provides a free service that outlines exactly where your super savings are: it's called MyGov and is easy to access online – as many as 6 per cent of young people check their accounts daily.
"Super is a long term investment and a key part of everyone's employment conditions," stated ASFA CEO Dr Martin Fahy on the significance of super education at a young age.
"Although many young people may see super as a distant prospect, we are keen to experiment with some behavioural economics to get them thinking about super in a different light."
To start the conversation about your current super savings, and to find out where your money is (for a start), make sure you get in touch with the friendly team at CAPE today.
