Half of us regard super as ‘lifeboat’

Just over half of Australians are struggling financially but most view superannuation as “a lifeboat” for their future finances, according to new super industry-commissioned research.

An Essential Research survey conducted for the Super Members Council found that 53 per cent of people are experiencing some degree of financial difficulty.

Essential Research said the proportion of people under financial pressure was consistently high throughout 2023, up from 39 per cent in mid-2022.

A third of people felt financially secure and usually had spare money for savings or buying luxuries, and another 13 per cent described their position as comfortable, without concerns about paying bills.

The biggest group, representing 39 per cent of survey respondents, said they were “struggling a bit” and were having to watch their budgets to ensure there was enough money to cover all their bills.

Another 14 per cent described themselves as being in serious difficulty, and being able to pay all their bills was a regular concern.

Super Members Council executive general manager of advocacy Georgia Brumby said while cost-of-living pressures were hitting family budgets, superannuation gave them a feeling of certainty and future financial security.

“More Australians are feeling the economic pinch right now, but super is seen as a lifeboat through today’s economic turbulent waters,” Ms Brumby said.

The survey showed 58 per cent of people agreed that their superannuation helped them feel more confident about their financial wellbeing.

Among those experiencing financial difficulty, 54 per cent said super gave them confidence about their financial wellbeing.

Overall, 55 per cent of respondents who had superannuation agreed that super was a low-cost way to build savings.

Research house Chant West predicted the median growth super fund would return 8.8 per cent for 2023, helped by a sharemarket rally fuelled by tech stocks and expectations of lower rates.