30 September 2005 
 
A recent national opinion poll commissioned by the Institute of Chartered Accountants in Australia found that one in two working Australians aged under 45 are concerned about financing their retirement and that investing in superannuation is a high priority.  
 
“While younger Australians are very aware of and concerned about superannuation and funding their retirement it is not universal,” said Hugh Elvy, Manager for Financial Planning and Superannuation, at the Institute.  
 
“The challenge now for Government and the superannuation industry is reaching those who are not concerned or not interested in superannuation. The research suggests these younger Australians are more likely to be the less well off, in blue collar jobs and with lower levels of education.  
 
“For over one in two working Australians under 45, investing in superannuation is a high priority, and they appear to understand the role of superannuation in supporting their retirement.  
 
“A significant proportion of younger working Australians aged between 30 and 44 apparently understand that they will be responsible for funding their own standard of living in retirement in twenty odd years time. Fifty percent of respondents were concerned about their future financial security and even more have put thought and planning into funding their retirement (77.5%).  
 
“Surprisingly 45.5% of working people aged between 30 and 39 are concerned about funding their standard of living in retirement.  
 
“One explanation may be that younger Australian’s understand that the old age Government pension will be inadequate in the future. The level of concern about supporting an adequate standard of living in retirement is almost the same, irrespective of whether or not the respondent worked in a blue or white collar job, their standard of education achieved or age.  
 
“Younger Australians don’t have to be convinced about superannuation. Instead the industry has to address the hurdles and obstacles that make it difficult for certain groups of younger working Australian’s to save for their retirement with super,” concluded” Mr Elvy said.  
 
While some younger working Australians may be unconcerned about financing their retirement, they are still thinking about it. Over three quarters of working people between 30-44 claim to have given some thought and planning into their financial situation for retirement, even if only a little. Some 39% of working Australians aged 30-44 claimed to have given quite a lot of thought and planning to their future financial security.  
 
Some 38% of respondents claimed to have sought professional advice which may reflect the impact of the superannuation choice reforms. Not surprisingly male respondents (43%), who are married (42%), in full time work (42%) and with household incomes of more than $70,000 (50%) were more likely to have sought advice.  
 
The research did indicate that turning forty is a major milestone in attitudes towards saving for the future with the issue taking on a higher importance for a greater proportion of the working population.  
 
The research also indicates that socio-economic class is a better indicator of attitudes towards superannuation than age. For example only 40% of people whose household income is less than $30,000 per annum said investing in superannuation was a priority as compared to some 60% of people aged between 30-44yrs whose household income exceeds $30,000 per annum.