Baby Boomers dominate Australia’s superannuation industry but younger Millennials are catching up fast. While Millennials are on the rise, trying to sell the benefits of a product to those who won’t reap the rewards for decades is a far more difficult task than selling to older members nearing retirement. Millennials rated their satisfaction with their fund significantly lower than Baby Boomers in a recent survey, suggesting low levels of engagement and brand loyalty remain an issue that needs to be tackled.
Other findings include:
• Millennials’ share of superannuation fund balances more than doubled over the decade ended September 2017 (from 6.4% to 14.6%) while Baby Boomers’ share declined by 12.1 percentage points, according to Roy Morgan Research.
• However, this growing force of younger investors rated their satisfaction about a full third lower than Baby Boomers. Understanding the drivers behind dissatisfaction through more effective engagement is crucial.
• We analyse the expenditure patterns of younger investors versus older investors, as captured in Milliman’s Retirement Expenditures and Spending Profiles (ESP), to reveal their needs and wants.
To learn more, read Kevin Moloney’s article “The Millennial imperative: Engage or perish.”