The report found that 79 per cent of older Australians viewed super as “very important” to their retirement, while 89.5 per cent also said that super needs to be saved for retirement. Another 70 per cent stated that if it they did not have superannuation, they would not have had the funds to retire.
The report also found that 24.6 per cent of older Australians surveyed wanted “strong net returns on investments” as something they wanted to see improved on super. Interestingly, only 11.5 per cent saw “tailored financial advice” as a means to improve their super, despite the advantages sound advice can give when looking to maximise retirement.
Speaking on the importance of strengthening super, Super Members Council CEO Misha Schubert highlighted that super is income for retirement, not savings that are dipped into during times of financial hardship.
“Australia’s super system is the envy of the world, but there is more to do to make it even fairer and ensure it works as strongly as it can for every single Australian in the system,” Schubert said.
Another finding in the report is that 6 per cent of older Australians want ethical investment options for their super, something a financial adviser can help direct them towards, and roughly 25 per cent stated they want some form of advice, whether that be tailored, phone or internet-based advice, or just general advice.
Beyond this, SMC also found that 78 per cent of retirees also wanted the ability to make direct contributions into a retirement account, with the report explaining that currently, “retirees who want to put money into super are forced to maintain a separate accumulation account and pay a second set of fees, with an administrative burden to roll their funds together”.
Touching on the dangers of accessing super early, the report found that 88 per cent of respondents expressed concern for people who are forced to dip into their funds. The findings illuminated two main concerns:
- That accessing super early will weaken one’s financial position in retirement.
- The additional cost burden on future taxpayers due to increased reliance on the age pension.
Around 61 per cent also expressed their support for current rules surrounding super preservation.
In January, Association of Superannuation Funds of Australia chief executive Mary Delahunty said: “Investing as little as one hour to make sure you’re on track to achieve your desired standard of living in retirement will reap dividends in the years ahead.
“This can be as simple as going over your latest statement, thinking about your risk appetite and whether it aligns with your current investment option(s), and considering seeking financial advice from an expert.”
Beyond maximising one’s retirement, advised superannuation holders are also less likely to make rash decisions during periods of market volatility, such as the COVID-19 pandemic or US President Donald Trump’s tariffs.
Just keep bashing advisers… then, the 11.5% who apparently still value tailored advice, will dissipate.