Terminal terminology

Most Australians think jargon renders super baffling and boring, so let's rephrase that.

By InvestSMART · 18 Apr 2012

By InvestSMART ·
18 Apr 2012

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Most Australians think jargon renders super baffling and boring, so let's rephrase that.

Are you in breach of your concessional contributions cap because you didn't factor in the super guarantee before you made salary-sacrifice contributions, thus incurring excess contributions tax? Or did I lose you at "concessional"?

If your mind went blank, you wouldn't be alone.

Research commissioned by Virgin Super has found Australians are somewhat baffled by superannuation industry jargon.

Eight out of 10 people who took part in a survey by researcher Galaxy agreed with the proposition that too much confusing jargon was associated with super. What's more, three out of four of the 1010 people surveyed said the terminology stopped them from taking a greater interest in their super.

Asked to select the phrase that best summed up their attitude towards super, 59 per cent picked negative terms, such as "boring", "baffling and difficult to understand" or "dull".

"We know Australians typically feel disengaged when it comes to super and we believe jargon is a factor driving the high levels of apathy," the commercial director of Virgin Money, David Curneen, says. "This is particularly true among younger age groups, where individuals have the best opportunity to engage with super and improve their retirement savings."

Virgin is calling for a review of super terminology, saying this would be more than symbolic because helping people take a greater interest should mean they boost their retirement savings.

A consumer psychologist at Naked Communications, Adam Ferrier, says in a video for Virgin: "If you take the word money, that kind of says something a little bit sexy, a little bit interesting.

"If you then talk about financial services, that sounds a little bit more plonk, maybe a little bit boring and slightly detached.

"Then you say the word superannuation and that kind of gets even more detached and nebulous."

Ferrier says language influences attitude, and attitude decides action.

For now, if you're stumped - or need a word for Scrabble - go to The Association of Superannuation Funds of Australia's dictionary of superannuation at www.superannuation.asn.au/Dictionary.aspx, where you'll journey from account-based pensions, through maximum deductible contributions and on to variable annuity.

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Frequently Asked Questions about this Article…

What did the Virgin Super research say about Australians and superannuation jargon?

Research commissioned by Virgin Super and carried out by Galaxy found widespread confusion: eight out of 10 people agreed there is too much confusing jargon associated with super, three out of four of the 1,010 people surveyed said terminology stopped them taking a greater interest in their super, and 59% described their attitude to super with negative words like “boring,” “baffling” or “dull.”

How does confusing super terminology affect everyday investors and retirement savings?

The article reports that confusing super terminology contributes to disengagement—three quarters of respondents said jargon stopped them from taking more interest in their super. Virgin Money’s commercial director David Curneen warns that this apathy can prevent people, especially younger investors, from actively improving their retirement savings.

Why is Virgin calling for a review of super terminology?

Virgin says a review of super terminology could be more than symbolic: simplifying language should help people take a greater interest in their super, which in turn could encourage actions that boost retirement savings.

Who warned about the psychological impact of financial language and what did they say?

Adam Ferrier, a consumer psychologist at Naked Communications, explained in a video for Virgin that language shapes attitude: words like “money” can sound interesting, “financial services” more dull, and “superannuation” even more nebulous—so how terms are framed influences whether people engage or tune out.

Where can I find clear definitions of superannuation terms mentioned in the article?

The article points everyday investors to The Association of Superannuation Funds of Australia (ASFA) dictionary: www.superannuation.asn.au/Dictionary.aspx, which provides plain definitions from account‑based pensions to maximum deductible contributions and variable annuity.

Are younger Australians more affected by superannuation jargon?

Yes. According to David Curneen of Virgin Money, younger age groups are particularly affected by disengagement linked to jargon, even though they have strong opportunities to engage early and improve their retirement savings.

How common is the perception that superannuation is boring or difficult to understand?

It’s common: 59% of survey respondents chose negative descriptors such as “boring,” “baffling” or “difficult to understand,” and 80% agreed there is too much confusing jargon associated with super.

If I feel baffled by superannuation terminology, what does the article suggest I do?

The article suggests using trusted, plain‑English resources such as the ASFA dictionary to look up unfamiliar terms. It also highlights an industry push—led by Virgin—to simplify terminology so more people feel comfortable engaging with their super.