New research from Money.com.au has revealed that 29% of Australians in or nearing their 60s don’t know their superannuation investment mix or risk profile — even as they approach retirement.
Super investment options vary depending on your risk appetite and other preferences. For example, ‘growth’ options typically carry more risk and volatility, but target better long-term returns. In contrast, ‘balanced’ and ‘conservative’ options prioritise stability over aggressive
growth.
Among older Australians who do know how their superannuation is invested, 36% are in a balanced option or default MySuper product. A further 16% have chosen a conservative or defensive option, while 11% are in a growth investment option, which generally allocates a
higher proportion of funds to growth assets like shares and property.
A smaller proportion (4%) hold a cash investment option, while just 3% have opted for an ethical investment option.
Money.com.au’s Finance Expert, Sean Callery, says too many older Australians are flying blind with their retirement savings.
“Not knowing your investment option or risk level means not knowing whether your super is suited to your retirement years and preferences. It’s important to check your super settings and returns regularly, as these will ultimately determine how comfortable your golden years will be,” he says.
“Older Australians are more likely to be in a balanced or moderate investment option than any other generation. They tend to take a more cautious approach as they near retirement.
“They’re targeting stability and capital preservation over aggressive growth. There’s no one-size-fits-all strategy; what’s important is knowing where your money is invested and ensuring it aligns with your goals as you get closer to retirement.”
The research found that Gen Z were the least likely to know how their super is invested, with 38% admitting they don’t know their investment mix or risk level. This compares to 30% of Gen X and just 18% of Millennials.
Millennials were the most likely to be invested in a growth option (28%), while Gen X were more likely to hold a moderate or balanced option or default MySuper product (31%), followed by Gen Z (27%).
