Australians finally shaken out of super apathy, says Mercer
Trust in super falling but Australians have finally been shaken out of apathy, according to the Mercer Superannuation Sentiment Index.
The online survey of 1,033 full-time working Australians aged 25-65 years was conducted in December 2009 and revealed that 58 per cent said they were very or fairly optimistic the economy would improve following recent share market gains. However, sentiment towards super declined in December 2009 from a rating of 42 out of 100 the previous year to 37. Only 41 per cent rated their superannuation fund as trustworthy, a decline of 11 per cent since December 2008. The survey also revealed that only 11 per cent of working Australians felt they were thoroughly prepared for retirement.
Respondents listed loss in value, not having enough funds for retirement and low growth and returns as their top concerns about super.
“The superannuation industry has reached a crossroad: we have a responsibility to challenge ourselves in the way we engage with members in order to address these fundamental trust issues, ease the fear of market uncertainty and ensure that members have confidence that their superannuation will remain a vital component of their retirement planning,” said Mercer partner Heather Dawson, adding that the super industry now has an opportunity to address some of the shortfalls in the system.
Despite a general perception that many Australians are apathetic towards their super, the survey showed 17 per cent rated their knowledge of superannuation as strong or sophisticated, while 55 per cent were aspiring to reach that level of knowledge.
Managing director and market leader at Mercer, Australia and New Zealand, David Anderson, noted in the report that while recent events have tested faith in the system, “they have also shaken Australians out of the apathy that typified the attitudes many have had towards their superannuation”.
However, the survey revealed that gaps in knowledge remained as one in five did not know the investment option their super was in and one in four did not know their current superannuation balance.
Dawson said that as such, the industry, government and superannuation funds have an important role to play in improving access to education and advice services to facilitate early retirement planning.
The survey also found that in looking for advice, 48 per cent of investors considered approaching their super fund while 43 per cent considered a financial adviser.
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