Family and friends remain a key resource when searching for advice and online support for retirement savings and planning, according to MFS Investment Management.
The 2023 MFS Global Retirement Survey, which interviewed 1,000 Australian superannuants, found that family and friends are key to the search for advice, with 36 per cent of respondents noting they lean on family and friends as a source for adviser introductions, while 28 per cent turned to their employers.
In terms of the preferred mode of delivery, 33 per cent of Australians want in-person or video contact with an adviser, though online tools such as retirement calculators have gained in popularity and were cited by 27 per cent of respondents.
Moreover, according to the investment manager, online financial publications, videos, and podcasts are becoming increasingly attractive.
Meanwhile, pure robo-advice struggled for traction with 5 per cent of respondents showing interest, while 13 per cent were not interested in any form of advice.
While tackling superannuants’ advice-related preferences, the research also revealed that only a quarter (26 per cent) of local respondents are confident in their ability to retire at the time and age of their choosing.
In line with their global counterparts, the majority (59 per cent) of Australians surveyed said that inflation had pushed them to change their thinking about retirement in the past 12 months, with more than half (54 per cent) opting for a more conservative investment approach.
The effects of inflation were found to have had a greater impact on retirement confidence than the market events of the past three years, including COVID-19.
Moreover, most of the respondents said they would now need to save more than they had previously planned (74 per cent), with 61 per cent noting they would need to work for longer and 40 per cent conceding they no longer see themselves retiring at all.
Joshua Barton, MFS managing director and head of Australia and New Zealand, said the findings speak to an increased need for advice.
“While the loss of retirement confidence in Australia is in line with global peers, it highlights the role that effective advice can play in helping investors meet their retirement objectives,” Mr Barton said.
“We need to continue to open pathways to advice across the superannuation system, including through superannuation funds and employers and new technologies to support Australia’s sophisticated yet smaller advice market.”
“This is particularly important as the industry readies for superannuation’s historic transition from savings accumulation to income drawdown; we must embrace the regulatory and legislative relief changes geared towards delivering better financial outcomes that can help insulate retirees, current and future, from market cycle stress,” Mr Barton concluded.
