On the ball

Disengagement has cast a long shadow over the superannuation system, undermining the potential for members to achieve better retirement outcomes. A mixture of policy changes and increased awareness, however, is finally shifting members' attitude.

- Karren Vergara

When it comes to superannuation, Australians traditionally follow the path of least resistance.

When a pot of gold feels 'so far away' members tend to adopt a cavalier attitude and habitual disengagement and, instead, dismiss it in the 'too-hard basket' to prioritise more immediate, pressing life issues such as saving up for a house or investment property.

A Colmar Branton (now Kantar) survey from 2010, for example, found only one third of employees chose their own super fund. Young people were also three times less interested in their personal superannuation affairs compared to older people. Only one-fifth of young Australians were interested in such matters compared to three-fifths (58%) of members aged 45 years or older.

Numerous surveys like this come to the same conclusion: the engagement gap is real.

A 2023 research paper from Melbourne University classified the engaged versus non-engaged as "insiders" and "outsiders" respectively.

Outsiders typically do not read statements or understand investment options and fees. They do not make efforts to calculate their retirement needs, like use online calculator tools and rarely make voluntary contributions.

Insiders, by contrast, are highly engaged across the aforementioned metrics, with voluntary contributions said to be "arguably the most important indicator of engagement." Interestingly, this cohort was more preoccupied with their property investment compared to their super.

More recent pulse surveys, however, show the tide is shifting. After 34 years of a compulsory pension system and with $4.5 trillion at stake, it has taken a generation to start showing real interest.

Investment Trends' 2025 Super Member Engagement Report found member sentiment is strengthening thanks to trustees' intensified focus on communication and service beginning to translate into measurable gains.