Superannuation interest running high after Covid and SG impacts

Super’s Covid early release scheme in 2020 sucked more than $36bn from people’s nest eggs, but may have had an unexpected positive benefit.

Online searches about superannuation have surged in recent years despite the cost-of-living crisis swallowing many Australians’ spare cash.

A new analysis by Australian Retirement Trust has found some Google searches about super have doubled since 2019.

There was a spike in super searches during the pandemic when the previous Coalition government let people withdraw super early, but the stronger interest has continued, according to ART.

The fund, which holds $240bn for 2.2 million Australians, says one of the most popular search terms, “superannuation Australia” is getting 50,000 clicks a month, up from about 26,000 four years ago, while “super Australia” was now searched more than 330,000 times each month.

ART acting chief of retirement Anne Fuchs said the increase in Superannuation Guarantee compulsory contributions from employers had focused interest, as had rising balances.

Australian Retirement Trust’s Anne Fuchs says super is now more valued. Picture: Ben Symons/The Photo Pitch

“I think young people too are seeing it as probably their single largest financial asset,” she said.

More than 3.5 million Australians withdrew up to $20,000 each from their super funds through the Covid early release scheme, wiping out many people’s nest eggs, but perversely this may have sharpened people’s focus on super by showing them it really is their money.

“I think it has made them realise the importance of superannuation and the opportunity that was lost on the back of having to draw down at that time,” Ms Fuchs said.

“But the positive side is I think people now value it a lot more, and the long-term nature of it.

“Young people are more engaged and more interested in investing than young people in previous generations.”

Ms Fuchs said today’s higher living costs and mortgage increases had affected people’s ability to put extra money into super, but “all is not lost” and they could still check they were in the right investment, avoid having multiple super funds, and consolidate accounts to reduce fees.

“There are things they can do as individuals even if they can’t afford additional contributions because of cost-of-living challenges,” she said.

JBS Financial Strategists CEO Jenny Brown said there was more talk about super in the media and elsewhere.

“The industry super funds are providing a lot more valuable information rather than just the compare the pair stuff,” she said.

Ms Brown said the Covid early release scheme had brought super to the forefront of people’s minds.

“There was a lot of commentary around should you take it out or leave it,” she said.

Money experts say younger people are taking more interest in their finances. Picture: iStock

“People are wanting to engage a little more, and we are finding more clients are engaged with what can it achieve, when can they retire and are looking at flexible working, four-day weeks and things like that.”

Ms Brown said interest in super was likely to continue growing “but there will be a ceiling”.

“You are going to get a percentage of people who are not engaged until it’s often too late,” she said.

For many people, Dr Google was the answer to their questions, Ms Brown said.

However, ART’s Ms Fuchs said people should not simply Google every super question they had.

“We would encourage people to call their super fund,” she said.

“People in their 20s and 30s might be thinking ‘I’m not retiring for 40 years so it doesn’t matter’, but they need to know that the decisions they make now will greatly impact their retirement.”

Originally published as Superannuation interest running high after Covid and SG impacts