Attitudes to Superannuation and the Value of Financial Advice

Attitudes to Superannuation

Some interesting statistics were released from ASFA’s annual research into community attitudes to superannuation.

The key findings of ASFA’s research include:

• Over two thirds of Australians believe that the 9% Superannuation Guarantee (SG) is not enough to fund an adequate retirement.
• Having enough in retirement was one of the biggest concerns of those surveyed, rating above issues such as mortgage payments, job loss, the global financial crisis and health care expenses.
• 79% of respondents are currently satisfied with their super fund – much the same result as that reported 12 months ago.
• 54% were satisfied with investment performance and only 11% very dissatisfied.
• 53% of respondents are expecting better returns this year.
• Over the last 12 months, 79% of respondents have maintained their superannuation contribution levels despite declining returns.
• 17% decreased their superannuation contributions as a result of the global financial crisis.  However, of those, 12% intend to increase their contributions over the next 12 months.
• 28% consider that super fund fees offer good or excellent value.
• 88% of respondents stated that they want more than $30,000 a year in retirement to support their desired lifestyle.

Source:  ASFA

The Value of Financial Advice

Research conducted by KPMG Econtech for the Investment and Financial Services Association (IFSA) has revealed that:

• those with a financial planner have $2,650 on average more in savings and investment balances than those without a planner (based on the level of savings in the 2007/08 financial year);

• an individual who has a financial planner saves an additional $2,457 each year compared to a similar individual without a financial planner.

This research is timely given the Government’s current review of the superannuation system.

Source:  KPMG Econtech Report, November 2009