Research from Sunsuper has further proven that many Australian workers are not adequately prepared for retirement, showing that 44 per cent of them do not fully understand or feel on top of their superannuation.
The study, which surveyed 1,000 adult workers, also found that 28 per cent of employees didn’t know or hadn’t thought about whether they would need to rely on the Government Aged Pension in retirement. Worryingly, 37 per cent said they would need the same or a higher annual income than what they were currently earning to fund their lifestyle in retirement.
The breakdown of understanding of superannuation was impacted by age, with 70 per cent of baby boomers feeling on top of their super compared to 53 per cent of their millennial peers.
Despite a lack of understanding about superannuation and low confidence regarding retirement, Australians weren’t often looking to financial advisers to help navigate their retirement preparation.
“The right financial advice can help in managing financial stress, yet workers say they see a number of obstacles to seeking financial advice,” Sunsuper wrote in the research findings.
Cost was the main barrier to seeking advice, with 41 per cent of those surveyed saying they thought financial advice was expensive. Reflecting the trust issues rampant in the industry currently, 33 per cent said they didn’t know who to trust. Thirdly, 29 per cent said it was difficult to know where to go for advice.
Comments
Instead of the Govt tearing Corporate Superannuation from the adviser and attempting to nationalise and dumb down the whole process via MySuper, why not allow employers to be able to fund superannuation seminars and presentations by experienced advisers for their employees as part of a nationwide superannuation program and allow the expense of the program to either be subsidised or be tax deductible to the employer.
Secondly, financial advice at a personal level should also be a deductible expense to the individual which may serve as an additional incentive to seeking advice.
The vast majority of Australians are reasonably lethargic and seemingly confused about when or how to access advice, but the problem starts when they are young and it is imperative that financial concepts regarding investment, insurance,superannuation and retirement are clearly explained at a school based level.
When respondents disclose they believe advice is expensive, they need to consider " compared to what " ?
If it's compared to the $6000 a year someone may spend on cigarettes, gambling, alcohol or fast food then unfortunately, those individuals will virtually never make an attempt to seek advice and guidance to enhance their position in retirement. It's a simple equation of education,priorities and responsibility.
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