New research reveals that while three-quarters of Australians recognise the importance of superannuation for their future financial wellbeing, there remains a significant gap in understanding how super functions to grow their savings.

Key findings from the Pyxis Polling and Insights survey include:

• Seven in 10 Australians do not know the current Super Guarantee rate.
• Three-quarters of Australians are unaware that super contributions are taxed at just 15 percent.
• Only four in 10 Australians understand that retirement balances are primarily composed of compound returns from investments, rather than the super contributions themselves.
• A third of Australians check their super balance less than once a year.

Despite these knowledge gaps, the survey indicates that Australians who feel they understand super are more likely to be engaged with their savings, satisfied with their financial decisions, and supportive of the super system. The survey of 1,030 people in July found:

• Satisfaction with super fund performance is highest among those who understand super, with 57 percent of this group reporting they are in a well-performing fund.
• Nearly 90 percent of Australians with a good understanding of super feel more confident about their finances, compared to 60 percent of those with an average or below-average understanding.

Currently, while 29 percent of Australians rate their understanding of super as eight or more out of 10, the majority (53 percent) rate their understanding between five and seven.

In response to these findings, the Super Members Council is launching a new public awareness initiative, ‘How Super Works,’ to help Australians grasp the powerful benefits of superannuation. The initiative features everyday Australians discussing super in accessible terms, providing clear messages, facts, and data about how super works.

Super Members Council CEO Misha Schubert stated that the initiative aims to demystify super and position more Australians to maximise their superannuation benefits. 

“Nearly three-quarters of today's workers were not in the workforce when super was legislated 32 years ago,” Schubert said. “It's timely to help more Australians understand how this system works for them and why it is the envy of the world.

“The more you know about super, and the more engaged you are with your super, the better you can make super work for you. Because super works automatically to help people build lifetime savings for retirement, it can be out of sight and out of mind for many, especially younger people.”

Ms Schubert emphasised the initiative's focus on using everyday language to explain how super works, featuring relatable Australians discussing super in clear and simple terms. 

“Australians value super,” she said. “They trust it is delivering for them and recognise its importance for their retirement. For many people, it will be one of their largest assets. However, super can seem complex, and the basics aren’t well understood by everyone.

“That’s why there is a need for straightforward explainers about the power of compounding returns, the light taxation of super due to its purpose for retirement savings, and how super works for individuals.”

The ‘How Super Works’ content will be featured on social and digital media. To learn more, visit www.howsuperworks.com.

The Super Members Council represents over 11 million Australians who have more than $1.5 trillion in retirement savings managed by profit-to-member superannuation funds. Its mission is to protect and advance their interests throughout their lives, advocating for stable, effective, and equitable superannuation policies.