Superannuation members overlook need for advice
Only 10% of superannuation members want to be referred to an adviser before they retire, while 50% want information to help them choose a retirement income solution, according to research from Frontier.
Frontier’s survey of 3,500 superannuation members also showed around one-in-five members were looking to their fund to recommend a suitable solution for them, also known as a default. Meanwhile, a similar proportion were not looking to their fund for any help.
Speaking at the Association of Superannuation Funds of Australia (ASFA) conference, David Carruthers, senior consultant and author of the report, said the superannuation industry needed the “rubber to hit the road” in the retirement space, especially with the Retirement Income Covenant (RIC) coming 1 July.
According to the report, about 65% of members were expecting to retire between 60 and 70 while one-in-eight members were expecting to retire before 60.
“So if your engagement policy is to engage the member five years before retirement, you want to be engaging with them at 55 not 60 Because at 60 they've gone.”
Frontier asked respondents what they thought was the most important retirement feature of a superannuation fund, aligning the possible answers with the goals of the RIC.
Lifetime income was the most important with 44% of respondents putting it as first priority, followed by flexibility (28%), high return (24% and bequest (6%).
AUTHOR
Liam Cormican
Recommended for you
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
The second tranche of DBFO reforms has received strong support from superannuation funds and insurers, with a new class of advisers aimed to support Australians with their retirement planning.
The financial services technology firm has officially launched its digital advice and education solution for superannuation funds and other industry players.
