New research warns that young Australians risk being around $128,000 worse off in retirement simply due to a lack of engagement with their superannuation funds.
The Super Members Council is urging young workers to monitor their super more regularly, after a survey of over 1,300 Australians by research firm Ideally found that more than a third either rarely check their super or do so only once a year.
The survey also revealed that 26 percent of Australians could not name their own super fund, rising to 28 percent among younger workers who are unaware of who manages their retirement savings.
The Council modelled the financial impact of this disengagement. Paying just 0.1 percent more in fees could reduce retirement savings by $14,000, while paying 1 percent more could slash it by as much as $128,000.
Super Members Council CEO Misha Schubert highlighted that Australia’s retirement system is strong but requires greater awareness among young people. “Small differences in super can add up to life-changing sums over time. Staying engaged with your super from when you start working until retirement is crucial,” she said.
Despite record-high super balances—averaging $172,834 for young Australians and $420,934 for those aged 65-69—one in three young people say super doesn’t feel like “their money” because retirement seems so distant.
The Council advises checking employer contributions, consolidating accounts to avoid duplicate fees, comparing fund performance using the ATO’s MySuper tool, and making small voluntary contributions. Modelling shows a 30-year-old who salary sacrifices $20 a week could add $67,000 to their retirement savings while also benefiting from tax incentives.
Engaged young Australians are six times more likely to take action to improve their super, demonstrating that regular attention now can yield significant long-term rewards.
