Consumer data shows retirement anxiety
A survey of investor sentiment conducted by the Investment and Financial Services Association (IFSA) shows a high level of importance is being placed on retirement savings, a lack of preparedness for retirement and a contrast between the expectations of active and passive investors.
Conducting by TNS on behalf of IFSA in October, the survey asked respondents questions about key issues affecting investment decisions and their opinion of the industry.
It also looked closely at the two distinct camps of people passively investing only the required 9 per cent Superannuation Guarantee (SG) contribution, and those who actively make additional contributions or make other arrangements for retirement saving.
Research findings showed that 95 per cent of respondents do not feel confident they have saved enough for retirement, with 55 per cent of passive investors worried about outliving their retirement savings, and 44 per cent of active investors feeling the same way.
This level of concern about the adequacy of retirement savings dropped to 69 per cent for active investors.
Richard Gilbert, IFSA chief executive, said he found the results of the study pleasing because it showed a high level of consumer confidence in the finance industry.
He also said that he feels there is too much ‘talking down’ of the industry, which does little to foster the Government’s aim to drive more self-sufficient retirees.
To do this, he thinks the industry and those reporting on it need to look more closely at feedback coming from consumers.
“Any industry worth its salt looks at consumer data.
“The mixed messages people are getting about the market É don’t help encourage greater contributions above the SG,” he said.
“The key for industry and Government is to get the message across that investing beyond the SG will help you sleep easy at night and achieve the retirement you dream of.”
Recommended for you
The financial services technology firm has officially launched its digital advice and education solution for superannuation funds and other industry players.
The ETF provider has flagged a number of developments as it formally enters the superannuation space through a major acquisition.
While all MySuper products successfully passed the latest performance test, trustee-directed products encountered difficulties.
Iress has appointed Insignia Financial’s former general manager of master trust and insurance products as its newest CEO of superannuation, who will take over from Paul Giles.
