GETTING young Australians interested in superannuation is no easy task, but new technological offerings have seen a spike in millennials taking charge of their financial future.
Super providers are targeting mobile phone users with apps aimed at making super a user friendly experience.
The Commonwealth Bank’s Essential Super product allows users to view super balances and transactions alongside their bank accounts using a mobile phone app. Customer numbers have hit 200,000, doubling in the past 12 months. Millennials, aged 18 to 34 make up 89 per cent of these customers and data shows that 46 per cent of all customers only ever use their mobiles while accessing super.
Peter Chun, a spokesman at Colonial First State, which manages CommBank’s super, says it is important to engage younger generations.
“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,” Chun said. “A lot of people have multiple super funds. One 25-year-old customer came to us with nine super funds from different jobs.”
Silvana Karzon uses her mobile to access super at home. PICTURE: Stephen Cooper.Source:News Corp Australia
Statistics show that being disengaged from super is costing Australians a mint.
“In our industry, lost super is over $15 billion that the ATO has, which is unclaimed,” Chun said. “There are 12 million working Australians and 30 million super funds, so people have an average of two or three funds.
“We want people, when they start a new job and give their employer their bank account details for their salary, to also say ‘here are my super details’.
Research shows more big lenders are using technology to move into the super space, with products owned by major banks growing almost five times faster than not-for-profit funds.
“People like to centralise their finances and banks are offering them the opportunity to invest in low fee superannuation that integrates into their online dashboards,” Alex Dunnin, executive director of research at Rainmaker Information, said. “This strategy is proving very effective.”
Silvana Karzon, 29, had money with two different superannuation providers when she decided to roll them into Essential Super.
“It made it easier to keep track of my money,” Ms Karzon said. “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 said the product comes with default investment options, which can be changed if the customer wishes. She enjoys managing her super on the go.
“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 said.
Super providers are also using mobile platforms to provide additional services.
REST Industry Super gives access to financial advice through a mobile platform, after Midwinter research found 21 per cent of Australians are only able to access the net via their mobile and that 60 per cent of all internet access occurs on mobile devices.
“Investing can be a daunting task and super is no exception,” REST CEO Damian Hill said. “REST Advice Online allows members to seek financial advice on their own terms in a way and at a time that best suits them.”
Originally published as Millennials supercharged for future