The national survey of 1,000 working Australians with superannuation found that 43 per cent of people did not know about their automatic life cover.
“It’s important that the 43 per cent who aren’t aware are aware, because they may need to claim on their super in times of crisis,” said FSC chief executive John Brogden.
“The majority of Australians have their life insurance through superannuation, yet only 57 per cent know that,” he added.
Perhaps of even greater concern, 48 per cent of those surveyed did not know the cost of the fees within their superannuation – a figure that needs to be “much higher”, Mr Brogden said.
But on the positive side, 72 per cent of those surveyed reported that they knew what their superannuation balance was.
“I was surprised at that figure. We have convinced ourselves as an industry that people aren’t engaged in their super,” said Mr Brogden.
But if 72 per cent of Australians know what their balance is, that number will include some younger Australians who are typically regarded as less engaged, he said.
The survey also found that 89 per cent of Australians support superannuation as a good way of saving for retirement (64 per cent “strongly”), and 83 per cent support the increase in the superannuation guarantee to 12 per cent.
Fifty-nine per cent of respondents said there are ‘too many changes to the superannuation system’, and 26 per cent said the government cannot be trusted when it comes to managing the system.
“It is clear that consumers want stability in the superannuation system and for compulsory superannuation savings to continue to increase to 12 per cent,” Mr Brogden said.
