Make super prominent in financial literacy says ASFA

The Australian Securities and Investments Commission (ASIC) has been told it is an appropriate time for superannuation to have a more prominent place in the National Financial Literacy Strategy.

The Association of Superannuation Funds of Australia (ASFA) has used a submission to ASIC on the strategy to suggest that the focus on superannuation be inclusive of both the pre and post-retirement elements of superannuation.

“Additionally, the role that superannuation can play in providing personal insurance throughout an individual’s lifetime should be advanced,” the ASFA submission said.

It said a constant challenge confronting both individuals and the industry alike related to continued low levels of engagement and understanding of superannuation in the community.

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“While ASIC’s efforts in this area in the past are to be commended, the proposed strategy that is going to be in place for a very long period out to ten years needs an increased focus on superannuation and retirement in our view,” the ASFA submission said.

It said the age at which Australians became eligible for the age pension had started increasing in 2017 and it was likely the impacts would become apparent in future years with individuals requiring additional guidance.

The ASFA submission said the organisation supported the concept of priority audiences and suggested that the importance of compounding returns in superannuation and its positive impact on retirement benefits meant that young people should be added as a category.

“At the other end of the age spectrum, we welcome ASIC’s recent efforts to better understand the financial capability of seniors through its commissioned research and support further attention to this audience in the 2018 strategy as well,” it said.