While not surprising that the largest population by age group who know and understand the details of how their Super works are over 55 years, what might be unexpected (to some), is that the next generation (45-54y) had the least knowledge among all age groups.
Attitudes By Generation
17 May, 2024
There was a similar pattern among the same age group (predominately Gen-Xers), when asking how active people are with their Super as well as understanding what it was invested in. This is not unique to Australia; for example, a report commissioned by the National Institute on Retirement Security1, found that Gen-Xers in the United States, who are often referred to as the forgotten generation, have a ‘dismal retirement outlook’.
Gen-Xers were the first generation to enter the labour market during the shift from Defined Benefit (final salary schemes) to Defined Contribution in the 1990’s. The United Kingdom (UK) has a similar story, with many having entered the job market too late to benefit from final salary pensions, yet too early to benefit from schemes such as auto-enrolment. The International Longevity Centre concluded that Gen-Xers are expected to ‘face significant challenges in retirement, if [UK] policymakers fail to respond urgently’.2
