The surprising superannuation habit holding Aussies back

With the hustle and bustle of everyday life, it’s easy to let your superannuation slip into the “I’ll deal with it later” basket. But as new research shows, stepping back for too long could mean missing out on simple opportunities to boost your confidence heading into retirement.

Fresh findings from AMP reveal that a quarter of Australians have never engaged with their super fund, while almost half only check in once or twice a year. In fact, more than one in four (27 per cent) either don’t know who their super provider is or have never interacted with them at all.

One surprising insight was around “intra-fund advice”. Only one in ten Australians know what it is—and among people aged 50 to 64, that figure drops to just 7 per cent—even though most say they’d use it if they knew it existed. Intra-fund advice, offered at no extra cost by leading super funds, helps members optimise their super through simple strategies around contributions, investments and transitioning to retirement.

Julie Slapp, AMP Super’s Director of Growth and Customer Solutions, said the research highlights a major missed opportunity.

“Too many Australians are disengaged with their super and unaware of the significant help available – support that could transform their quality of life in retirement,” Slapp said.

“Small steps – like checking your fund details or talking to your provider – can build confidence and unlock the full benefits of compounding returns.

“We know that as little as an extra $20 a week put into super can grow to ~$98k over 30 years through compounding, yet more than half of Aussies under 40 don’t understand the concept.”

“Programs such as AMP Rewards, also make it easy to turn spare change into super savings that compound over time.

“We also strongly encourage Australians to take full advantage of intra-fund and digital financial advice, often provided at no extra cost by super funds – the guidance can be transformational.”

Despite these tools being freely available, cost remains the biggest perceived barrier to seeking advice. The research uncovered several other key trends:

• Low engagement: 27 per cent never engage with their super provider; 44 per cent only once or twice a year. Only 8 per cent of Australians aged 50+ started regularly checking their super balance in their 20s.
• Untapped support: 70 per cent would use intra-fund advice if they knew it was available.
• Late start: 3 in 4 (74 per cent) Australians aged 50–64 wish they’d started saving earlier. For those under 50, nearly 2 in 5 wished they’d started thinking about their retirement in their 20s.
• Public mandate: 94 per cent want financial literacy taught in schools.

To help Australians take control, AMP recommends three simple steps:

1. Log in and check your fund: Know your provider, check your investment mix, and consolidate accounts if needed.

2. Ask about intra-fund advice: Access your fund’s phone-based advice or digital financial advice which is now offered by leading funds.

3. Start money conversations at home: Use your annual statement as a springboard to talk about retirement and super with the family.

“It takes hardly any time to review your fund online – and that small step could make a meaningful difference to your retirement outcome,” Slapp said.

Another way to stay on top of your retirement savings is by checking your annual superannuation statement, which gives a clear snapshot of how your fund is performing, what fees you’re paying, and whether your insurance and investments still suit your needs.

So rather than toss them in the junk pile, Canstar is encouraging Australians to make a habit of checking their annual statements to ensure they are in good financial shape for retirement.

Canstar’s data insights director, Sally Tindall says, “Your annual super statement isn’t a piece of mail you want to be filing away unopened. Instead, use it as your yearly reminder to check in on your retirement fund.”

“Superannuation is one of the most significant assets you will ever own, yet many Australians let it run unchecked without a second thought,” Tindall added.

When checking your annual statement, Canstar suggests sticking to the following checklist to understand how your super fund is performing:

1. Check details: Make sure your personal details are correct and your tax file number is recorded.
2. Review contributions. Check your employer has paid you the right amount of super over the year.
3. Assess your returns and fees. Understand how your fund performed over the last year, but also the longer-term returns. Compare this to the top-performing funds. Also, check the fees you’re paying are reasonable.
4. Size up your balance. Check your balance is on track for a comfortable retirement.
5. Assess your investment mix. Make sure it will deliver on your long-term goals but isn’t taking on an excessive amount of risk for your age.
6. Review insurance in super. This may include life, total and permanent disability, and income protection insurance to make sure it suits your needs.
7. Confirm beneficiaries. Review who is the binding or non-binding beneficiary.
8. Consolidate multiple accounts. Consolidating your accounts into one could save on fees and make it easier to track your retirement savings.

Staying engaged with your super doesn’t have to be overwhelming; even small check-ins and simple conversations today can help build a more stable, less stressful and far more rewarding retirement tomorrow.

IMPORTANT LEGAL INFO This article is of a general nature and FYI only, because it doesn’t take into account your financial or legal situation, objectives or needs. That means it’s not financial product or legal advice and shouldn’t be relied upon as if it is. Before making a financial or legal decision, you should work out if the info is appropriate for your situation and get independent, licensed financial services or legal advice.