Seniors value our super system
Research conducted by NSA and the Super Members Council reveals how older Australians use and appreciate superannuation.
Research helps us represent you and supports our financial sustainability.
National Seniors Australia (NSA) sincerely thanks all the survey participants who participated in this study into older people’s views about the superannuation system. This research project not only helps build our understanding of older people but also contributes to NSA’s financial sustainability – so thank you.
You can read the full report here and click here to learn more about the research that informs our advocacy campaigns supporting older Australians’ wellbeing, needs, experiences, and perspectives.
Older Australians overwhelmingly value our national superannuation system and what it has delivered for them.
The Super Members Council and National Seniors Australia (NSA) asked more than 3,000 Australians aged 50-plus about their views on the superannuation system.
The survey was distributed online to NSA members and supporters in October 2024.
Superannuation was viewed by most as critical to their retirement planning. Approximately 79% of respondents said super was “very important” and a further 15% said it was “somewhat important” to their retirement planning.
As one woman, aged 70, told us, “Australians are extremely fortunate to have our superannuation system, that should be no more than tweaked into the future. It is robust, strong, and supportive to all Australians.”
Another survey respondent, aged 76, said, “It is a form of savings that you never know when you might need it and ‘save for a rainy day’.”
Three in four respondents to the survey believed they would not have saved as much without compulsory super.
The survey also asked respondents about the fundamental principles that have unpinned the success of Australia’s world-envied superannuation system – universality, compulsion, preservation, and concessional taxation.
Nearly 90% or more of respondents agreed with each of the four principles, representing near-universal endorsement.
• Universality – every worker should get super: 97% agreement.
• Compulsion – super guarantee contributions are a mandated part of employment entitlements: 96% agreement.
• Preservation – super must be saved for retirement: 89% agreement.
• Concessional taxation – super contributions are taxed lightly 94% agreement.
Related to this, respondents were asked to indicate how confident they were that super rules contributed to system strength, sustainability, and equity.
Most respondents were confident that the rules governing super make the system strong (77% confident) and sustainable (74% confident).
The survey findings were less emphatic about the superannuation system promoting equity. Fewer respondents (60%) endorsed the equity of the super system compared to proportions endorsing its strength and sustainability.
Compared to the overall sample, women, people in poorer health, and those with less formal education had significantly lower levels of confidence in the equity of the super system.
These groups generally do not have equal access to the benefits of superannuation due to disrupted work histories or lack of employment opportunities.
Considering current debates about rules governing early access to super (prior to preservation age), the survey also sought to test respondents’ support for changes to rules for early access for hardship, compassionate, and medical reasons.
We found there was low support for changes to existing rules. Access to super prior to preservation age for additional reasons was not supported by most respondents with 88% nominating they had at least one concern.
The top concerns were the financial impact on people with low balances and future cost to taxpayers due to greater need for income support from the Age Pension.
Only 17% of survey respondents supported allowing early access for a house deposit.
The survey also investigated older people’s use of lump sum payments.
Half of the survey sample had drawn a lump sum from their super mainly for purchasing vehicles or travel and leisure. Those at risk of financial disadvantage were significantly more likely to use a lump sum to pay for basic needs such as health or aged care services, to buy household goods, or even enter the housing market.
In these circumstances, access to lump sums provides peace of mind and a financial tool in the absence of access to borrowing, which is generally facilitated by the existence of regular income from employment.
Older Australians also identified areas for improvement in the system and ways it could be strengthened.
Respondents supported the proposal to allow retirees make direct contributions into existing pension phase accounts without having to open a new accumulation account: endorsed by 78%.
You can read the full report here.
