Aware Super has released a tool called My Retirement Planner, which is expected to be launched widely in 2024, to provide insights into retirement confidence.
My Retirement Planner is available to all Aware Super members via their online portal and members who have only recently joined Aware will be able to access their investment history in their previous fund.
The information gathered will provide members with retirement confidence score.
Over a third of Aware Super members scored 75–89 per cent with a median confidence score of 77 per cent.
Jacki Ellis, head of retirement at Aware Super, said: “Planning for the future in times like these isn’t just for those nearing or in retirement. We know it’s hard to have a detailed view of life in retirement, especially if it’s in the distant future, in fact, we know visualising more than around 15 years ahead is difficult.
“That’s why we created My Retirement Planner, to help users of the tool understand their possible lifestyle goals, and then help them plan the steps to achieve those goals, whether they’re two or 20 years out.”
The tool has a Play mode that allows users to test how a range of variables – from changing retirement age, making additional contributions or changing your lifestyle goals – can all have an impact on retirement confidence.
“Over one third (31 per cent) of users said they would make voluntary contributions to improve their confidence score, rather than delaying retirement (24 per cent), which reinforces the importance of understanding your retirement lifestyle goals and the actions needed to achieve them,” Ellis said.
Key steps that members can take to plan for their retirements include assessing their current financials and future income, identifying what their retirement lifestyle will look like and making an action plan of how they will achieve this desired lifestyle.
Under last year’s Retirement Income Covenant (RIC), super funds are encouraged by APRA to develop tools to help individuals’ standard of living in retirement. Trustees should assess, develop and improve their retirement income strategies in the best financial interests of members.
