Millennials take an interest in super
Nineteen per cent of the 7,919 users who logged in to Decimal’s Eqilizedigital advice platform in the quarter to 31 December 2017 were under the age of 35, according to Decimal’s Digital Insights report.
The report indicated that usage by under 35s had grown 82 per cent on the previous quarter, and 14 per cent of the younger generation had made additional contributions to their super.
Decimal’s CEO, Nic Pollock, said the shift in behaviour is a positive change in younger generations understanding the importance of saving for their financial future.
“There’s a range of potential reasons for the increase in younger people’s engagement with their financial affairs, including the Federal Government’s announcement in the last Budget of the First Home Super Saver Scheme (FHSSS),” he said.
Pollock suggested that digital financial advice has been the driver of greater engagement across all demographics.
He noted that the findings coincided with the ongoing rollout of Decimal’s online advice platform, which includes self-service online options as well as phone services where advisers use Decimal interfaces to guide members.
“The overall growth in use has led to Decimal systems now accounting for almost $10 billion in funds under advice across some of Australia’s largest funds including QSuper, Mercer, Energy Super, and we’ve recently gone live in South Australia with Statewide Super,” he said.
Pollock said Decimal has commenced the implementation of tools and advice geared towards home ownership given the Government’s home affordability moves.
“The FHSSS provides an opportunity for superannuation providers to further engage younger members by offering dedicated calculators and educational advice,” he said.
“By offering educational tools and resources, providers are better equipping and guiding aspiring home owners through the process of determining the level of additional contributions required and when to access funds to put towards a home deposit.”
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