Savers confused by super terms

Many older Australians lack knowledge about the basic aspects of superannuation, new research has found.

According to a Suncorp Life survey, which was obtained by the AAP, one in three people between 50 and 64 did not know the definition of "transition to retirement".

This is in fact an important part of superannuation whereby people aged 55 or older have reduced their working hours and are able to top up their part-time income with an income stream from their super savings.

The study also found that "preserved benefit", which is a superannuation benefit that must be kept in a super fund until retirement, was wrongly identified by older Australians as a regular return or, alternatively, what was left after the government took a cut.

Australians seeking to improve their long-term incomes could also choose to compare savings accounts in search of the best returns. Commenting on the research, Suncorp Life executive general manager David Carter said: "The superannuation industry needs to do more to demystify super by using plain English to clearly explain industry buzz-words."

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