The Australian Securities and Investments Commission’s (ASIC) Moneysmart is calling on superannuation funds to enhance their services, transparency, and access to information to better connect with millennial members.
During a recent roundtable hosted by ASIC, key voices representing millennial interests highlighted that the current language and approach to superannuation is outdated and fails to engage this demographic. The discussion emphasized that super funds must evolve or risk losing millennials’ trust. Traditional terms like “retirement planning” and “pensions” do not resonate with a generation more concerned with immediate financial goals and the rising cost of living.
With approximately $2.7 trillion in superannuation assets in Australia, excluding self-managed super funds, the roundtable participants urged super funds to become more accountable to their members. They emphasized the importance of providing easy access to tools, calculators, and goal-setting information to foster greater engagement.
Improving retirement outcomes and member services is one of ASIC’s five strategic priorities for 2024-28. Moneysmart, which offers free tools and information to help consumers plan for their financial future, plays a key role in this effort. As the cost of living continues to rise, millennials are managing multiple financial priorities, from mortgages to family responsibilities. However, the panelists agreed that superannuation is an area where millennials can take control without incurring additional financial strain.
In response to the roundtable’s insights, ASIC’s Moneysmart is launching a consumer awareness campaign aimed at millennials. The campaign will highlight the benefits of early and consistent engagement with superannuation, showing how regular contributions can compound significantly over time.
What Australian experts had to say
The cohort brought together a panel of highly recognized Australians from financial advice, research, and content creators, including:
Simone Constant – ASIC Commissioner
Victoria Devine – Host of Australia’s number one financial podcast ‘She’s on the money’
Andrew Dunbar – Award winning financial adviser, APT Wealth
Queenie Tan – Financial content creator
Effie Zahos – Finance journalist and roundtable host
Dr Angel Zhong – Associate Professor of Finance at RMIT University
New research from ASIC’s Moneysmart revealed the concerning trend that nearly half (48%) of surveyed millennials admit they are not knowledgeable about maximising their super. Despite being the first generation to enter the workforce with compulsory superannuation from day one of their working lives, millennials are less engaged with their super compared to previous generations. The roundtable convened by ASIC identified a significant transparency gap, with panelists suggesting super funds are failing to meet the expectations of their millennial members.
ASIC Commissioner Simone Constant said: “I encourage superannuation fund members to think of themselves as a customer. As a customer, you have choices and can demand services match your needs as you would from other financial services providers, such as your bank or insurer. I question whether super fund members receive the same level of clarity about what is happening with their super compared to the minute-by-minute access you get from other banking and financial services apps.
“Millennials are willing to plan and engage with data for their long-term physical wellbeing and health. Now is the time to see millennials engage in the same way with their long-term financial health through their super. The tools and information on ASIC’s Moneysmart website are a great place to start for anyone who is keen to take small steps that compound over time and achieve their future goals.”
RMIT Associate Professor Dr Angel Zhong added: “From an investor psychology standpoint, when we as consumers see complicated things, our attention is shifted because we only have so much mental bandwidth. Super funds need to avoid jargon and use relatable examples so people can proactively engage.”
Andrew Dunbar explained: “As an industry we could do a much better job of making super tangible for people. We need to show people where their money is invested. Make it less about “superannuation”, more about tangible investments. Superannuation calculators help people connect with their super. They can help show people the lifestyle they could be living, as well as helping to track progress and see how changes with contributions can have an impact.”
Effie Zahos added: “We need to shift the mindset from seeing super as competing with our immediate financial goals to appreciating it as an essential part of our overall financial journey. You don’t have to contribute extra to your super to boost your returns; just give it some extra time to make sure it’s working for you.”
