Three quarters of Australians believe super is important to their future wellbeing – yet public understanding of how super works to grow savings remains low, according to new research.
For example, the survey found seven in 10 Australians don’t know the current super guarantee rate (11.5%), 75% couldn’t nominate super’s low tax rate, while a third check their balance less than once a year. While 29% of respondents rated their understanding of super an 8 or more out of 10, most Australians said they have a moderate understanding, with 53% giving ratings between 5 and 7.
Australians who feel they understand super, however, are more likely to be engaged with their savings, be happier with their financial decisions and strongly support the super system.
To strengthen public understanding, the Super Members Council has launched a new public awareness campaign, ‘How Super Works’, to help Australians learn about the powerful benefits of super.
The campaign features a series of videos of everyday Australians having conversations in clear and simple language about how super works, delivering accessible messages, facts and data. The goal is to demystify super and put more Australians in the best position to maximise their nest egg.
“Nearly three-quarters of workers today weren’t in the workforce when super was legislated 32 years ago – so it is timely to help more Australians understand how this system works for them – and why it’s the envy of the world,” Super Members Council CEO Misha Schubert said.
“The more you know about super, and the more engaged you are with your super, the better you can make super work for you.
“Because super works automatically to help people build lifetime savings to deliver them income in retirement, it can be out of sight and out of mind for many, especially for younger people.
“Understanding the basics of how super works strengthens people’s engagement with super and helps Australians get the most out of our country’s world-class super system.”
More information about ‘How Super Works’
