A survey for Catholic superannuation provider CSRF shows that younger people still share the aspirations of their parents and grandparents for a secure financial future.
The recent survey conducted for the Catholic Superannuation and Retirement Fund (CSRF) targeted 200 groups who have members with a common interest in this year's World Youth Day celebrations on social networking website, Facebook.
The research was conducted by the fund to gain insight into Generation Y and help guide communications with younger fund members.
Sam Hallab, acting Chief Executive of CSRF, believes the superannuation industry faces a challenge to make superannuation relevant for younger generations.
"By understanding this group’s mindset we can develop more effective ways of engaging with this key audience group," said Mr Hallab.
With almost 80 percent of respondents believing that in the next 20 years they will be settled down with a family and nice house, the suburban dream is still very much alive. The survey points out a number of savings related challenges to face before young people can achieve that dream or think seriously about saving for retirement.
"The great Australian dream of home ownership is becoming harder and harder for young people to achieve, given that housing prices continue to rise, and interest rates and inflation levels are making it much more difficult," Mr Hallab said.
Housing Industry Association research released recently predicts continued strong rises in rents and property prices for at least the next 3 years.
Findings from the CSRF facebook survey shows 45 percent of respondents spend most of their spare money shopping, on leisure activities and generally having a good time, while 27.5 percent save most of their spare cash.
Less than 40 percent of those surveyed said they were saving money for later in their life, and just 27.5 percent were already thinking about their retirement or planning to do so in the next year.
"CSRF has an opportunity here to help educate young people about the benefits of saving for their retirement, and beginning to think about their financial future," Mr Hallab continued.
"Our challenge among this group of young Catholics is to give them information and tools that are relevant to them."
"It is exciting for us to see how useful social networking sites, like facebook and MySpace can be in speaking directly to young people. This is proving to be a new channel to reach out and understand Generation Y and one we will continue to utilise," he concluded.
CSRF taps into social media to understand GenY (CSRF, Media Release, 17/7/08)