Choice of fund will drive need for advice

By Mike Taylor

Superannuationfund members are likely to place heavy reliance on financial planners in the event of a full choice of fund regime being implemented in Australia, according to a national survey commissioned by major administration firm,Superpartners.

The survey, released last week, reveals a large majority of super fund members believe they will need a lot of independent advice in a choice of fund regime, with 83 per cent saying they will need information to help them choose a fund, and more than half indicating they will leave the choice entirely to a planner.

The survey findings have prompted Superpartners chief executive Frank Gullone to suggest the Government will need to embark upon a strong education campaign in the event of implementing any major changes to the super regime.

The survey found that around half of respondents believed they would spend at least some of their retirement working and pointed out that these responses had been received even before the Treasurer, Peter Costello, made his announcement late last month.

It says the expectation of ongoing work is highest among older workers, with two-thirds of those aged 50 to 59 indicating they are resigned to working part-time past retirement age. The survey also shows that half the working population expect sources other than super to provide their main source of income in retirement and only 9 per cent expect to provide all or most of their retirement income.

It says that 38 per cent of respondents expect super to provide less than half the income they will need in retirement, with about a third expecting to move to a smaller home to help fund their retirement.