The latest survey by Money magazine conducted in early February, based on 594 responses, indicates a significant shift in Australians’ approach to monitoring their superannuation balances. The survey highlights that 40.7% of respondents now check their super balances on a monthly basis, a substantial increase from the 7.5% reported in 2023. Moreover, there has been a notable rise in the number of individuals, 20.5%, who review their super accounts every payday, up from 3.2% in 2023. Conversely, the percentage of people monitoring their balances less than once a year has decreased to 4.7% from 16.6% in 2023.
The surge in interest in superannuation balances can be attributed to the current cost of living crisis, which has heightened awareness of the challenges associated with relying on a fixed income during retirement. Michelle Baltazar, the editor-in-chief of Money magazine, emphasized the importance of actively monitoring super balances, considering it is likely the second-largest investment after one’s home. This increased vigilance is indicative of Australians recognizing the significance of superannuation in securing their financial future.
The survey also sheds light on the key factors Australians consider when evaluating superannuation options. It reveals that individuals prioritize competitive fees, with 79.3% emphasizing the importance of low fees, slightly edging out the significance of fund returns, cited by 79.0% of respondents. Additionally, respondents highlighted the importance of user-friendly apps and fund websites, excellent customer service, and transparency regarding fund investments.
Furthermore, the survey suggests that 44% of Australians delay making voluntary contributions to their superannuation until they reach at least 40 years of age. Baltazar noted that while this delay is understandable due to financial commitments earlier in life, even small voluntary contributions made early on can significantly impact retirement savings through compounding returns. This underscores the value of starting to save for retirement as early as possible to ensure a comfortable lifestyle later in life.
The evolving trends in superannuation monitoring and voluntary contributions reflect a growing awareness among Australians of the critical role superannuation plays in securing their financial well-being in retirement. By actively engaging with their superannuation accounts, individuals are taking proactive steps towards ensuring a financially stable future. This shift in behavior underscores the increasing financial literacy and responsibility demonstrated by Australians in managing their retirement savings.
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