Older Aussies adverse to stock market risk
Retired Australians want financial security and peace of mind, but are worried about gambling their life savings on share market-dominated superannuation, research from National Seniors Australia’s new study shows.
It points to a failure of the superannuation system to help retirees safely convert their savings into reliable income that lasts a life time.
Professor John McCallum, National Seniors chief executive officer, said the study revealed the conflict experienced by many retirees who felt they had little option, but to continue ‘gamble’ in the share market, despite a low tolerance for risk.
“When members reach retirement, the risk of managing their superannuation savings shifts from the super fund trustee to the retiree who may have little experience with this,” McCallum said.
“It is both a clear opportunity and a responsibility for the superannuation sector and government to reset the regulatory and product focus of superannuation to better meet the needs of Australian retirees.”
Recommended for you
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
Former chair of the House of Representatives’ Standing Economics Committee, Tim Wilson, is planning a return to politics after losing his seat in the 2022 federal election.
Morningstar is going to offer research ratings of funds in the $3.5 trillion superannuation sector for the first time in response to demand from financial advisers.
Treasurer Jim Chalmers has opened a consultation into the design of the annual superannuation performance test, canvassing views on a range of reform options.