In recent times, more Australians are taking a proactive approach to managing their superannuation funds, according to the latest survey conducted by Money magazine. The survey, based on 594 responses, highlighted a significant increase in the frequency of Australians checking their superannuation balances. Surprisingly, 40.7% of respondents now monitor their super on a monthly basis, a substantial rise from the mere 7.5% reported in 2023. Additionally, a growing number of individuals, about 20.5%, are reviewing their super accounts every payday, marking a substantial increase from 3.2% in 2023. Conversely, the percentage of people who barely check their balances annually has dwindled to 4.7% from 16.6% in 2023.
This surge in interest can be attributed to the prevailing cost of living crisis, which has heightened awareness of the challenges associated with relying on fixed incomes during retirement. Michelle Baltazar, the editor-in-chief of Money magazine, emphasized the significance of actively monitoring superannuation accounts, considering it is often the second-largest investment after one’s home. The survey also shed light on the factors Australians prioritize when evaluating superannuation options, with competitive fees outranking returns as the most crucial aspect for 79.3% of respondents, closely followed by the funds’ returns at 79.0%.
Moreover, respondents highlighted the importance of user-friendly apps and websites, excellent customer service, and transparency regarding the investment destinations of members’ funds as critical factors influencing their choice of super funds. Baltazar commended the increasing awareness among Australians regarding the impact of fees on superannuation, emphasizing that while investment returns may fluctuate, fees remain constant and can significantly diminish long-term super savings. Notably, the survey disclosed that 44% of Australians delay making voluntary contributions to their superannuation until they reach at least 40 years of age, often due to financial constraints related to homeownership, mortgages, and raising families.
Baltazar encouraged individuals to consider making even modest voluntary contributions from an early age, underscoring the potential of compounding returns to substantially enhance retirement savings. This proactive approach can significantly improve one’s future retirement lifestyle. The survey findings indicate a growing trend of Australians taking a more engaged stance towards their superannuation, reflecting a broader shift towards financial literacy and long-term financial planning among the populace. As individuals become more cognizant of the nuances and implications of superannuation management, they are better equipped to secure a financially stable retirement.
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