After my musings on superannuation last week and the feedback and concerns we hear from readers, I was relieved to read new research showing most of you still believe it is the most appropriate investment vehicle for your retirement.

A Newspoll survey, conducted by the Australian Institute of Superannuation Trustees as recently as March, found more than 80 per cent of respondents still had faith in the compulsory superannuation system. This is good news, although 61 per cent expected their returns to be worse than last financial year. 

The chief executive of AIST, Fiona Reynolds, was buoyed by the findings and understanding of the situation facing superannuants. "Importantly, this hasn't led to panic among investors," she said when announcing the results. 

Voluntary contributions are still being made, with 57 per cent who already make them planning to continue this year, although 37 per cent say they will stop. Some of you have changed options within your superannuation fund into a more conservative style (17 per cent) but only a few (11 per cent) have changed funds. And even with the disastrous performance of the markets and the almost 20 per cent drop in returns by the median superannuation fund, super assets are forecast to more than quadruple in the next 20 years.

Deloitte forecasts the industry's current assets under management of $1.2 trillion to reach $2 trillion by 2014, $3 trillion by 2018 and $7 trillion by 2028.

Interesting shifts are ahead. Compulsory superannuation has a very short history - less than two decades - and to date most of the superannuation assets have been held by baby boomers. This demographic, combined with people born before 1942, held almost 60 per cent of total superannuation assets last year. Gen Y accounted for just 4 per cent. During the next 20 years, as boomers retire and use their superannuation funds, the balance of power will shift towards Gen Ys and Gen Xs, who are forecast to hold 35 per cent and 49 per cent respectively of all superannuation assets by 2028. 

Superannuation funds will have to change the way they treat their members to accommodate this demographic shift and the industry will also have to ensure the younger generations are actively engaged with their superannuation now. While the 9 per cent superannuation guarantee might be enough to ensure an adequate lifestyle for some, just an extra $50 a month could make a difference of more than $80,000 at retirement for a 21-year-old earning $50,000 and planning to retire at 60. Many funds are already honing their message for Gen Ys but after the current tough times are over, it is an area that will demand more attention.