The Australian Securities and Investments Commission (ASIC) said its launch follows national research showing that “around half of Australians approaching retirement worry they could run out of money, yet many want to learn more to build confidence about their future”.
This is reflected in Challenger and YouGov’s latest entry into their ‘Challenger Retirement Happiness Index’, with that research finding 46 per cent of surveyed Australians were worried about running out of money in retirement, with cost-of-living pressures cited as a key point of fear.
The research also found women were more likely than men to cite the risk of outliving their savings as a key concern, a valid feeling considering women on average outlive men and endure inferior retirement outcomes.
Research referenced by ASIC had similar findings, with 48 per cent of Australians aged 50 to 66 worried they will run out of money in retirement, 32 per cent feeling like they are already behind in preparing to retirement and only 18 per cent having a clear retirement plan.
“It’s natural to feel uncertain about retirement but without a clear plan in place and that uncertainty can quickly turn into anxiety about whether you will have enough money,” said ASIC commissioner Alan Kirkland.
Moreover, 46 per cent of pre-retirees reported low financial literacy, and 58 per cent reported they want to learn more about superannuation.
“In response, ASIC has developed a consumer awareness campaign which directs Australians to the new Moneysmart Retirement Hub where they will find practical tools, calculators and guidance to support their retirement planning,” the regulator said.
According to ASIC, a key feature of the hub is the ‘Retirement Planner’, which will allow users to:
- See how much income they could have in retirement from their superannuation, the age pension and other income sources.
- Understand whether may be on track for the retirement they want.
- Explore how different scenarios could affect their money.
“The planning tool brings together key sources of retirement income in one place, including superannuation, to help Australians answer the key questions many are asking, such as: ‘Will I have enough money? Am I on the right track? and What can I do next?’” ASIC claimed.
“The Retirement Hub also provides a range of other tools and resources including calculators to understand superannuation balances, Age Pension eligibility and retirement income options.”
Kirkland added: “The new resources on Moneysmart can help people move from worry to clarity – through simple, trusted tools and information to help them understand how they are tracking and plan for their future with greater confidence.”
This could be interpreted as ASIC attempting to capture a portion of the market who are increasingly turning to digital advice.
While curated digital advice such as this new feature on Moneysmart can help guide increased financial literacy and offers guidance to those who cannot afford in person planning, the importance and impact face-to-face advice has cannot be understated.
According to research conducted by the Financial Advice Association Australia, 88 per cent of advised Australians felt they had enough money for retirement, with 96 believing having an adviser has helped them remain confident even in times of economic uncertainty.
Similar research conducted by Russell Investments stated that 90 per cent of advised Australians felt that having an adviser made them feel more confident in their finances.
