Young Australians are consuming vast amounts of financial content on social media, yet many remain disengaged from their superannuation—a key pillar of long-term financial security.
Despite the wealth of information available, experts warn that a lack of active management could cost millennials tens of thousands of dollars in retirement savings.
Financial experts caution that rising cost-of-living pressures are overshadowing superannuation, potentially leading millennials to miss out on substantial retirement savings.
ABC News Australia reports that millennials aged 25 to 39 risk forfeiting tens of thousands of dollars due to limited engagement with their super, despite its long-term financial benefits.
Millennials Disengaged From Their Most Valuable Asset
For many working Australians, superannuation is one of their most significant assets, yet it is often overlooked in favour of more immediate financial goals.
ASIC Commissioner Simone Constant emphasised the importance of super, stating that it is likely to play a bigger role for millennials than it did for previous generations, particularly given the rising cost of housing.
Despite this, many young Australians remain unaware of how to optimise their retirement savings. Research by ASIC’s Moneysmart found that 48% of millennials admitted they were not knowledgeable about maximising their super, while 31% checked their super’s performance less than once a year—or not at all.
Social Media Finance Trends Exclude Superannuation
Financial literacy content is thriving on platforms like Instagram and TikTok, with millions of posts under the hashtag #personalfinance.
However, the focus of this content tends to be on active investments rather than long-term savings strategies such as superannuation.
Mitch Hall, a 31-year-old teacher interviewed by ABC News, reflected this trend, stating that most of the financial advice he encounters on social media is centred around investments, rather than super.
“You have your active investments that you focus on, but then your super is more of something that builds up over time,” he explained.
This mindset may contribute to a passive approach, where younger Australians fail to consider how even small additional contributions to their super can accumulate significantly over time.
The Cost of Inaction Could Be Tens of Thousands of Dollars
The long-term impact of neglecting superannuation can be substantial. Effie Zahos, a finance journalist, illustrated this with a striking example.
“A 28-year-old on the average salary doing nothing, just waiting on super guarantee contributions, will have around $700,000 at retirement in today’s dollars.”
Experts argue that small voluntary contributions now can yield significant benefits later.
“If you can drive an extra $20 a week now in your contributions it can mean $50,000 in the future,” stated Simone Constant.
Furthermore, superannuation offers tax advantages that other forms of investment do not. Salary-sacrificed contributions are taxed at a concessional rate of 15%, compared to the standard 30% for many workers earning an average wage.
Barriers to Engagement: Cost of Living Pressures and Financial Literacy Gaps
Many young Australians cite a lack of understanding and immediate financial pressures as reasons for not engaging with their superannuation. Kyla Little, a 25-year-old entrepreneur, admitted that she had never actively contributed to super.
“I feel like I lack the resources to understand it very well,” she said.
Financial literacy challenges also play a role. Lel Smits, Director of the Australian Shareholders Association, noted that difficulties with mathematics during school years could lead to a sense of being overwhelmed by financial topics like superannuation.
