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%).