Millennial super quadruples over past decade
The superannuation balances of Millennials have more than quadrupled in the 10 years to September 2017, representing an overall of $226 billion, according to Roy Morgan Research.
The latest Roy Morgan Single Source Survey superannuation held by Millennials increased 382 per cent between September 2007 and September 2017 rising by $226 billion.
The Millennial share of superannuation fund balances also rose, doubling from 6.4 per cent at September 2007 to 14.6 per cent at September 2017.
According to the survey results, gains in superannuation market share over the last decade were seen across all three of the younger generations, with Generation X up 8.7 percentage points to 36.2 per cent, Millennials up 8.2 percentage points to 14.6 per cent and Generation Z up from zero to 1.9 per cent.
Gains in dollars held were greatest for Millennials up 382 percentage points, followed by Generation X up 177 per cent.
The older generations which were previously the major contributors to superannuation fund growth, are now showing declines in market share, with Baby Boomers down 12.1 percentage points over the last decade to 39.7 per cent and Pre-Boomers down by 6.8 percentage points to 7.5 per cent.
Roy Morgan industry communications director Norman Morris said the research shows that due to the compulsory nature of superannuation, Millennials, Generation Z and Generation X are where the greatest growth potential now lies.
“Baby Boomers and Pre-Boomers are becoming less significant for superannuation growth in the long term due to retirement and the associated drawing down of their superannuation balances,” said Mr Morris.