Office work
Australians already have the necessary tools and sources of income to grow their super—but many aren’t fully utilizing them. Pixabay

Retirement may seem like a distant concern for many Gen Z Australians, but experts suggest it's time to start thinking about saving for it sooner rather than later.

Recently, research showed that Gen Z -- born between 1997 and 2012 -- has surpassed baby boomers as the most financially confident generation in Australia. However, money manager Alex Jamieson warned that many in this group were overlooking one of their largest financial assets -- superannuation (super), 7News reported.

Despite being financially savvy, Gen Z isn't alone in this mistake, as Jamieson pointed out that many other demographics were equally neglectful of their retirement savings.

Jamieson added that most Australians already have the necessary tools and sources of income to grow their super, but many aren't fully utilizing them.

The founder of AJ Financial Planning, Jamieson, emphasized that even small, proactive changes now could lead to massive financial gains in the future. One such change is choosing a super fund that aligns with individual needs, rather than simply accepting the default fund set by an employer.

Despite the clear financial benefits, research indicates that Australia's understanding of superannuation remains low. The Super Members Council launched a public campaign in 2024 to educate Australians on the power of super and help them better understand how it works.

A simple change with a big impact

Jamieson highlighted that something as simple as changing the investment option from "balanced" to "growth" could significantly increase retirement savings. For example, a 25-year-old with an AU$80,000 salary and a starting super balance of AU$7,328 could add AU$277,360 to their retirement savings by making this one change, assuming a 1% higher performance rate and retiring at 67.

Five generations in the workforce

For the first time in history, five generations are working side by side: from the Silent Generation all the way to Gen Z. While each generation has different views on money management, retirement goals are crucial to ensuring everyone -- from baby boomers to zoomers -- can make informed financial decisions for their future.