Research commissioned by Club Plus Super indicates Australians are failing to make additional super contributions, which could lead to a ‘perfect storm’.
The independent survey of 843 fund members showed that while 51.6 per cent of respondents understood how much money they will need at retirement age, only 32.1 per cent said that they are making extra super contributions to their super fund.
Chief executive officer of Club Plus Super, Paul Cahill, said Australia’s ageing population, combined with strained healthcare and retirement infrastructure, indicates “we may have the perfect storm approaching the world in the coming decades”.
Stefan Strano, head of marketing for Club Plus Super, told InvestorDaily Australians should take interest in their super earlier, to ensure they are adequately prepared for retirement.
“We see people somewhere between the ages of 45 and 50 become interested suddenly in super. The most common comment is, ‘I wish I’d done something earlier’,” Mr Strano said.
Financial planning is integral to getting super on track, he believes.
“Financial planning [helps] people understand how super works and what their options are. It supports them through their working life into retirement,” he said.
The research showed that of the respondents who were not certain that superannuation was a good area in which to invest, more than three in five cited financial markets (62.8 per cent) and the global environment (59.3 per cent) as central reasons.
Mr Strano said people “overwhelmingly” say they don’t have confidence in financial markets.
“People need certainty regarding products – they don’t like not knowing what their return will be from their super,” he said. “The effects of the GFC still resonate.”
In addition, the research suggests Australians are more comfortable with managing their financial affairs online. Over three in five respondents (61.7 per cent) had used the fund’s website over the past year. Mr Strano said this engagement is not limited to its younger members.
“More and more statistics indicate that the older population are growing quite strongly in terms of online engagement,” he said.
