Aussies still in the dark on superannuation fund investments

superannuation-funds/cent/superannuation-fund-members/AIST/superannuation-trustees/chief-executive/

20 March 2012
| By Staff |
image
image
expand image

Many Australians still do not understand enough about their superannuation funds, including how they're actually invested or whether they'll have enough in retirement.

This is one of the bottom lines of an Essential Media poll commissioned by Australian Institute of Superannuation Trustees (AIST) and released at the Conference of Major Superannuation Funds this week.

The poll found that many Australians do not have a clear idea where their fund invests their super savings, with 45 per cent saying they "didn't know" how superannuation in a balanced fund was typically invested.

It also found only 15 per cent of respondents thought correctly that a 'balanced' default investment could have more than 50 per cent in growth investments.

The poll showed that while more than 75 per cent of fund members had opened and read their most recent annual or half-yearly statement, less than half read it thoroughly or noted their investment returns.

Commenting on the poll, AIST chief executive Fiona Reynolds said it highlighted the need for funds to better communicate with their members using plain language to give a clear understanding of how and where superannuation savings were invested.

"As we head towards 12 per cent and account balances rise further, people will need to start thinking more about their super, particularly as they get closer to retirement," Reynolds said.

"Clearly, intra-fund financial advice has a role to play here - as does meaningful disclosure about super investment options on websites and elsewhere," She said.

However, the poll suggested that social media might not be the 'silver bullet' to better engagement, with 50 per cent of superannuation fund members saying they would not use a smart phone App that enabled them to look up their super fund investment returns and other information.

Younger people, however, were more likely to use an App (53 per cent). 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 4 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

5 months ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

1 week 6 days ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 4 days ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

3 weeks 2 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND