Australians have the right attitude towards their super, but many are still not aware of the additional services their fund provides, according to research by the Australian Institute of Superannuation Trustees (AIST) and Russell Investments.
The research was released at the same time as AIST and Russell launched their inaugural Super Engagement Index, which enables super funds to track member engagement.
The research revealed that 85 per cent of respondents agreed that super was important to their retirement, and six in 10 placed importance on it, said managing director of corporate superannuation at Russell Investments, Geoff Peck (pictured). The research also revealed that many put super on par or ahead of most other financial and investment decisions, he added.
“The findings from the research show the work being done by the industry is starting to have an effect and not just with those approaching retirement,” he said. “Although older members place more importance on superannuation, saving for retirement is a life-long journey and many are recognising it needs to be a priority as soon as we start working.”
AIST chief executive Fiona Reynolds said one-third of the survey respondents were aware of the proposal to raise the super guarantee to 12 per cent. The survey also revealed the level of concern among super members that they would not have saved enough for retirement. Over half of respondents in each of the age groups over 46 years felt their super balance was low and time was running out, and 31 per cent were not confident their retirement income goals were on track.
“Longevity risk is a concern for many fund members so it’s concerning 36 to 45 olds – a crucial time for saving for retirement – are not making the time to engage with their super,” said Reynolds.
One in three did not know the amount their employers contributed to their super.
The industry needed to simplify and improve member communications, education and additional services such as insurance, said Peck, noting that only 6 per cent of respondents had taken up their super fund’s offer to top up their default insurance cover in the past year and only 55 per cent knew they could increase their insurance coverage via super.
