Do you have enough super? Aussies over 55 have doubts
When we think about retirement, confidence is key. Unfortunately, a recent survey by CoreData published 24 October found many Aussies aged 55 and over are uneasy about their retirement funds.
In the CoreData survey, as reported on by the Australian Financial Review, 3,800 workers and 3,000 retirees were asked to rate their preparedness to retire and satisfaction with their retirement across major superannuation funds. Each fund was then scored from 0 to 100 with an average score of just 50.2, highlighting some real concerns about the industry's support for retirees.
A tale of two phases: accumulation and retirement
Here’s the thing – when it comes to super, there are two crucial phases: the accumulation phase, where you’re building up your nest egg, and the retirement phase, where you start tapping into those funds to support your lifestyle.
The industry has traditionally excelled in the accumulation phase. Even though super funds dipped in September due to concerns about interest rates, according to Chant West, the median growth fund still gained 5.2 per cent in the first nine months of the year. This resilience shows the strength of super funds during the accumulation phase.*
* The ASIC warns that past performance is not a reliable indicator of future performance.
Support during the retirement phase: is your super supporting you?
However, the transition from accumulation to retirement is no small feat. CoreData's findings show that retirees want more assurance about their funds in this latter phase. After all, navigating retirement is a pivotal time in anyone's life.
So, how can the industry do better? A prevailing point of view is to provide a more personalised, engaging and interactive experience, similar to what companies like Amazon offer. It's about understanding the unique needs of each retiree and tailoring solutions just to them.
Sure, many super funds are already offering a range of tools to help retirees navigate their finances, but the CoreData survey suggests the super funds need to up their game.
The goal? Provide clear information, tools that everyone can use, and personalised advice when needed. Do that, and the industry can make the path to retirement smoother, letting retirees focus on enjoying their hard-earned break.
Lacking confidence in your fund? Find out how to change super, plus everything else you need to know about saving for retirement, in our superannuation guides hub.
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