Retirement Adequacy

With all the volatility in the markets lately, it’s little wonder that people are worried about their retirement.

While two in five people (40.6%) say they are likely to meet their retirement income needs, a further two in five (39.1%) say they are unlikely to do so.

But what’s more interesting is that despite their concern, more than half of Australians admit they’re not doing enough to save adequately for their retirement.

So why not?

The Government has released a raft of super reform targeted at enhancing Australia’s superannuation system since the inception of SG guarantee more than 20 years ago. The reforms include MySuper, SuperStream and other changes surrounding self-managed super and governance.

CoreData’s Dormant Members research reveals that nearly three in five people (58.0%) admit they are not doing enough to save adequately for their retirement – a concern given that more than half did not feel they had the required level of wealth to finance their retirement (53.7%).

I am not doing enough to save adequately for my retirement

The overwhelming majority would like their super fund to provide them with advice and guidance (84.9%), suggesting that communication around retirement is becoming ever more critical for superannuation funds.

Similarly, information and advice is a strong retention and consolidation driver. When asked what their super fund could do to encourage them to continue making contributions and/or retain their funds with them, one third of respondents with dormant super accounts wanted their dormant fund to provide information that was simple and easy to understand (31.0%).

Further, high quality advice and guidance from funds may help provide direction to the substantial proportion of people who admit they are not doing enough to save adequately for their retirement.

*CoreData’s Dormant Member Survey Report is available for purchase. Please contact CoreData on 02 9376 9600.