Despite current cost pressures, the majority of Australians are confident about their financial future because of their superannuation, according to a recent survey commissioned by the Super Members Council (SMC).
The consumer survey of 1,151 people found some 45 per cent are fairly confident and 15 per cent are very confident that the super system works in the best interests of everyday Australians.
Interestingly, this sentiment persisted despite almost 40 per cent admitting they are struggling a little in the current cost-of-living crisis and are having to watch their budgets to ensure they can service all their bills.
Per the survey’s findings, over half (58 per cent) of all respondents with super and 54 per cent of respondents with current financial difficulties said super gives them confidence regarding their financial wellbeing.
Georgia Brumby, executive general manager of advocacy at the SMC, observed that super is being viewed as a “lifeboat through today’s economically turbulent waters”.
“Our universal and world-class super system has provided economic security, financial flexibility, and peace of mind to millions of Australians,” Ms Brumby said.
“If the policy settings remain stable and changes are made only in the members’ best interests, super can go on delivering for generations to come.”
The survey found profit-to-member funds are the most trusted of Australia’s financial institutions in terms of ensuring that the superannuation system works in the best interests of ordinary Australians, followed by the Fair Work Commission and regulators.
Meanwhile, financial advisers and the big four banks were among the least trusted.
The findings also revealed that over half (55 per cent) of Australians believe super is a low-cost way to build savings, while an equal number said it has performed strongly over the long term. In contrast, some 17 per cent and 14 per cent, respectively, disagreed with the sentiment.
While noting that confidence and trust in the super system remains generally high, Ms Brumby had a call to action for members who are not as engaged with their fund.
“Previous research shows those who take an interest in super are happier with their fund’s investment performance, so we would urge all Australians to check in with their fund to make sure they are getting the most they can from their super,” she said.
“Life is busy and retirement for many is decades away, but spending some time now looking into super could really pay off in the long term.”
Earlier this month, research house SuperRatings reported positive fund returns were expected from the preceding year despite swirling uncertainty and inflation, with the median balanced option expected to return 9.6 per cent for 2023.
Kirby Rappell, executive director of SuperRatings, observed: “While 9.6 per cent is a strong result, it is only the 10th highest return since 2000, showing the ability of superannuation to deliver for everyday Australians at consistently high levels.”
Additionally, long-term returns remain strong with an estimated median return of 6.5 per cent per annum since 2000, he said.
ouch!
It would be interesting to see how many of those who don’t trust advisors actually have one or have ever dealt with one. Bet the answer would be less than 5% have (if that!).
How about asking people who do use or have used an advisor what they think. I guarantee the results would be substantially different and totally opposite! Talk about selective surveying!
Calling this type of biased and conflicted surveying of members[b],[/b] “research”, is appalling.
However, the QAR “qualified” super fund product floggers are the MOST trusted individuals in Australia. This is really just a “survey” of the Industry Fund CEOs & Senior Management. It’s getting really desperate now. Annoying hard-working retail advisers like this deserves a return favour. Like the Liberals (when elected) putting in place a new policy of allowing young working families being able to use their Union Super Funds as a home mortgage offset. That will solve the financial “trust” problem entirely.
Seriously, financial advisers should hit the IFA with a Defamation suit. I am so sick and tired of you lot downing financial planners. Grow up and stop printing garbage. You are destroying this profession and when everyone has to go on Centrelink because they are financially unable to navigate a complex super system so they spend the money instead – then Australia will have really worries given Centrelink already is struggling to pay pensions and navigate applications in a timely manner.
I’m blaming the media here. The industry funds are just selling their products. I will also blame the government if their sales staff are termed “qualified financial advisers”.
You can’t be sued for defaming an industry. Maybe blame your contemporaries that destroyed any good will anyone had for advisers in years past by accepting egregious commissions?
The finding in terms of trust in financial advisers needs to be split between those who have an adviser and those who do not. We know that those who have an adviser, highly trust their adviser. Presumably this result is driven by those who do not have an adviser, who are influenced by the uninformed chatter on advisers. Their opinions are an issue, but not very relevant. In the absence of this split, this is largely meaningless data.
Surprise surprise (yawn). A union super lackey group, SMC – previous members of Australian Institute of Superannuation Trustees (AIST) and Industry Super Australia (ISA) – release a ‘survey’ result hitting out against planners…
What a surprise, a totally conflicted new ‘Council’ representing ‘not for profit [after payments to political parties, union functions, Director fees and sporting events…] Super Funds’ concocting an outcome to a Survey they funded……
In the old days a lot of clients were advised by their highly incentivised advisers to transfer their super from a great industry fund into the super fund of the organisation incentivising the adviser.
Would love to know how this has worked out for the clients and whether they have recourse, even though the “best interests” duty wasn’t law at the time the advice was given.
…and in the current days these industry funds run the biggest “mark your own homework” ponzi schemes?
Wow imagine an Industry Super Fund body finding that Industry Super are the most trusted. Amazing stuff.
– Wonder if they asked in the survey if members would like to speak to a Real Adviser or if they would prefer to deal with Uneducated, Unqualified Call Centre Backpackers that are only selling single Industry Fund products under the guise of so called Advice ?
– Wonder if they asked if ALL Industry Fund members should pay for Sales Advice via HIDDEN COMMISSIONS when 90% of Members get NO SERVICE for the HIDDEN COMMISSIONS paid?
Like the extra $40,000 bonuses paid to the “qualified” intrafund advisers at one large Industry Super Fund, as publicly disclosed in their Adviser FSG. Commisions are bad, bonuses are brilliant. Its simply mind-warping hypocrisy.