Millennials have a reputation for thinking only of today and worrying little about the future. However, new research shows we might not know young Australians as well as we think we do. A Commonwealth Bank study shows Generation Y are more engaged with their superannuation than ever thanks to new technological advances.
One such advance is Commonwealth Bank’s Essential Super. Through the companion app, users can view their superannuation balances and transactions alongside their bank account details. The app currently has 200,000 users, and 89 percent of them are between 18 and 34 years old. The app is also gaining traction, with its user population doubling in the last 12 months.
The Commonwealth Bank is just one of many financial firms targeting Generation Y with mobile apps that make managing super easier. Tech products from the major banks are growing nearly five times faster than those released by non-profit superannuation firms. The tech initiatives make sense as the Commonwealth Bank’s research found 46 percent of its customers only access their superannuation details via their smartphone.
Peter Chun, a spokesperson for Colonial First State which manages Commonwealth Bank’s superannuation option, says it’s crucial for firms like his to engage young people.
“Super is not top of mind, particularly for millennials, but they are the first generation that will go through their whole working life with compulsory super,” he told news.com.au. “A lot of people have multiple super funds. One 25-year-old customer came to us with nine super funds from different jobs.”
Users seem just as enthusiastic about the technology. One satisfied customer, Silvana Karzon, told news.com.au she had money in two different super funds before consolidating it into Essential Super.
“It made it easier to keep track of my money,” she explained. “In the past I never checked my balance and didn’t know how much was in my super. I now log in and look at my balance every couple of weeks.”
Ms. Karzon says managing her super with her smartphone allows her to use her time more efficiently.
“You can do it on the train, you don’t have to wait until you get home or call a person and spend time on hold,” she added.
Being disengaged from superannuation can take a toll on the financial future of ordinary Australians. Studies show the Australian Taxation Office has more than $15 billion in unclaimed super. As there are 30 million superannuation funds for the 12 million Australians in paid employment, many Australians have multiple funds costing them a fortune in fees every year.
Are you engaged with your superannuation? If you want to get plugged in, contact Chase Edwards. We’ll help you reconnect with your superannuation so you can secure your financial future. Call us on 1300 854 833 to learn more about our super services.