New research from Australian Seniors has identified 44 per cent of Australians over 50 consider financial advice as “extremely important” when choosing a super fund.
According to the Australian Seniors Super Savvy Report 2023, released this week in partnership with CoreData, one in five (21 per cent) of the over 5,000 surveyed respondents said access to professional financial advice is one area that their super fund needs to improve on.
Interestingly, the most commonly cited service that respondents deemed their current super fund needs to improve the most on is keeping them informed of current market conditions and what they’re doing about it (41 per cent).
Alongside the desire for greater access to financial advice, respondents placed high importance on integrity, with 85 per cent of respondents considering trustworthiness as extremely important when choosing a super fund.
Other key characteristics according to over 50s included returns (79 per cent) and fees (75 per cent).
Moreover, 9 in 10 (91 per cent) Australians expressed a desire for a seamless transition from saving for retirement to turning their savings into retirement income without incurring capital gains tax.
However, despite finding that pre-retirees and retirees have strong feelings towards what they desire out of their super fund, over one in two (54 per cent) admitted to only checking their super returns as little as four times or less each year.
Dawn Thomas, senior financial adviser at The Wealth Designers, said many Australians, particularly women, cannot afford to be a “passive financial participant” when engaging with their super.
“If you need additional support achieving your personal goals, consult a financial adviser. A healthy financial process is one where you feel comfortable enough to collaborate with your adviser and feel empowered to ask any questions and make your own decisions,” Ms Thomas added.
These findings come after Financial Services Minister Stephen Jones published the Quality of Advice Review’s final report last week, which recommended superannuation funds should be welcomed as advice givers.
Namely, recommendation number six of the review reads: “Superannuation fund trustees should be able to provide personal advice to their members about their interests in the fund, including when they are transitioning to retirement.
“It is in my view in the interests of superannuation fund members to be able to get good personal advice from their fund,” Michelle Levy clarified in her 267-page final report.
