Super no longer just purview of boomers

New research shows younger generations are rapidly growing their share of the multi-trillion dollar superannuation pool.

It may not be cool for the younger working generations to talk about their superannuation but they are rapidly growing their share of the multi-trillion dollar funds pool.

New research shows in the past decade those born between 1975 to 1990 have more than doubled their super share from 6.4 per cent to 14.6 per cent.

While baby boomers - born 1946-1960 - still have the biggest proportion of super, that is now in rapid decline as they retire and draw down on their nest eggs.

Roy Morgan research found between 2007 and 2017 boomers' share super has declined from 51.8 per cent to 39.7 per cent.

Roy Morgan industry communications director Norman Morris says due to the compulsory nature of superannuation, millennials, Generation Z and Generation X are where the greatest growth potential now lies.

"It is a major challenge for superannuation funds to engage the younger generations in a long-term issue such as superannuation when they are most likely to have shorter-term priorities such as housing affordability and lifestyle," Mr Morris says.

The research released on Monday also found older generations are happier with the performance of their fund than younger ones, although that was put down to the relative size of their average super balances.

The average balance for pre-boomers (the oldest group) is $289,400 compared to $16,600 for Generation Z (the youngest generation).

The average balance held by millennials is $59,500, well up on their average of $17,300 in 2007.

HOW THE SUPERANNUATION SHARE HAS CHANGED BETWEEN GENERATIONS OVER THE PAST DECADE

Pre-boomers (born pre-1946)

2007 - 14.3 per cent

2017 - 7.5 per cent

Baby Boomers (1946-1960)

2007 - 51.8 per cent

2017 - 39.7 per cent

Generation X (1961-1975)

2007 - 27.5 per cent

2017 - 36.2 per cent

Millennials (1976-1990)

2007 - 6.4 per cent

2017 - 14.6 per cent

Generation Z (1991-2005)

2007 - zero

2017 - 1.9 per cent

(Source: Roy Morgan)