Dads feel more confident than mums explaining super investing to teens, new research finds

Many parents of teenagers feel comfortable explaining where super comes from, but fewer feel confident explaining how it grows and is invested, new research from Rest¹  has found.

The research found fathers are significantly more likely than mothers to feel confident explaining investment-related aspects of superannuation to their teenagers. Nearly two-thirds (62%) of fathers feel confident explaining how to choose an investment option, compared with 48% of mothers.

Rest Chief Member Officer Simone Van Veen said the findings may point to a confidence gap in how parents rate their ability to talk about super, rather than a knowledge gap.

"Confidence is not the same as knowledge," Ms Van Veen said.

"What this research suggests is that many parents want to help their teenagers build an understanding of super, but some feel more equipped than others to start those conversations.”

Across all parents surveyed, confidence was highest when explaining how super contributions are paid (76%) and lowest when explaining how to choose an investment option (55%).

Fathers were also more likely than mothers to feel confident explaining:

• Compounding returns (68% of fathers compared with 50% of mothers)
• How fees affect a super balance over time (68% compared with 50%)
• How investment risk affects returns (67% compared with 51%).

"Most parents feel comfortable explaining the basics, such as how super contributions are paid. But confidence drops when conversations turn to topics like investment options, fees and compounding returns.

"Super can feel complex even for adults, so it's not surprising that some parents feel less confident explaining concepts that can have a significant impact on long-term retirement outcomes."

With around 860,000 Australians aged 15 to 19 in the workforce² , the teenage years can be an important time to begin building an early understanding of super and its role in their financial future.

Ms Van Veen said a teenager's first job can be an important opportunity for parents and carers to start practical conversations about super.

"For many young people, their first job comes with their first pay slip and, where they are eligible, their first super contribution," Ms Van Veen said.

"They can see wages land in their bank account and immediately understand what that means. Super is different. It's money they won't access for decades, so it can feel much more abstract.

"But young people have one of the most powerful advantages they'll ever have when it comes to super: time. Money invested early has decades to grow through compounding returns."

Additional research conducted with Rest members³  showed very strong support (89%) for super funds doing more to educate younger members about super. Support was consistent across age groups and stronger among women (91%) compared to men (87%).⁴

Ms Van Veen said parents should not feel they need to be superannuation experts to make a positive difference.

"Parents don't need to know everything about super to start a conversation and help their teenagers get started and find trusted, reliable information," Ms Van Veen said.

"The most important thing is often simply having the conversation and knowing where to find trusted, simple information.”

To help families navigate those conversations, Rest has developed a range of free educational resources that aim to make super simple, including Teaching teens about super: A guide for parents and a dedicated Super Simple Chats podcast episode, First job, first super: Helping teens get started.

The resources focus on general education and encourage young people to seek further information or support before making decisions about their super.