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.
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