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Australians pessimistic about retirement savings

Australians pessimistic about retirement savings

Reporter
— 1 minute read

Less than 10 per cent of superannuation fund members are confident they will have enough money in their superannuation to support their retirement lifestyle, according to Investment Trends.

Investment Trends’ 2016 Member Sentiment and Communications report found that the majority of fund members were either unsure if their super balance would support their retirement lifestyle (25 per cent), nervous about their balance (20 per cent) or lacked any confidence their balance would support their lifestyle (15 per cent).

“Less than one in 10 members say they are very confident they can finance their preferred retirement lifestyle from their super,” said Investment Trends senior analyst King Loong Choi.

“The current uncertainty on super regulation is certainly not helping allay members’ growing angst about their retirement future.”

More than a quarter of fund members also reported they were seeking help on how to grow their super balance, Investment Trends said.

Despite this, the research found only 900,000 members switched funds in the previous 12 months, representing the lowest rate of switching in seven years at 7 per cent of the member population.

“The key triggers for switching funds have always been either changing jobs for younger members or retiring for older members,” said Mr Choi.

“The current trend suggests members are now increasingly likely to stick to their fund throughout lifestage events.”

The number of fund members considering switching however, remained similar to last year at 5 per cent, with a third of these citing high fees as their reasoning.

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Australians pessimistic about retirement savings
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