Millions of Australians approaching retirement are confused about the meaning of some of the most fundamental superannuation terms, a Suncorp Life survey has found.
The survey, conducted on Australians between 50 and 64 years of age, found one in three couldn't provide the definition for "transition-to-retirement".
The study also found that women were far more likely to be confused by industry jargon compared to men.
More than 42 per cent of women surveyed had not heard of transition-to-retirement, compared to 35 per cent of men, and almost 60 per cent had not heard the term "non-concessional contribution", compared to 47 per cent of men.
Suncorp Life executive general manager David Carter said the survey was a wake-up call for the superannuation industry to talk in plain English to its customers.
"The superannuation industry needs to do more to demystify super, by using plain English to clearly explain industry buzzwords," he said.
"Many respondents offered confused definitions for the term transition-to-retirement, such as "advice for retirees", "God's waiting room" and "transferring fees from one account to another".
"Confusion about what the phrase means could potentially result in large numbers of workers missing out on extra retirement savings."
Definitions provided by survey respondents for "commutation" included "a form of communism", "going from place to place" and "part of an electric motor".
Some respondents also thought the term "preserved benefit" meant "regular return" and "what is left after the government takes its cut".
"While the survey responses may be humorous, financial literacy awareness is a serious issue and one that needs to be addressed," Carter said.
"This survey clearly demonstrates the industry as a whole has more work to do.
"Not understanding the terminology may cause investors to feel they lack control of their money and believe it's simply too hard to ensure their super is being managed effectively."
