Super knowledge gap driving need for advice

3 October 2023
| By Jasmine Siljic |
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With more Australians desiring digital tools to learn about their super, Otivo research has highlighted the need for financial advice to bridge the super knowledge gap.

A new report from financial advice platform Otivo, which surveyed over 1,000 participants commissioned by Pureprofile, found that Australians lack knowledge when it comes to their nest egg.

The research revealed that 3.5 million Australians (15 per cent) do not know which type of super fund they have. 

Generation Z ranked highest for a lack of knowledge at 24 per cent, compared to 13 per cent of Millennials, 11 per cent of Generation X, and 14 per cent of Baby Boomers.

Over 40 per cent claimed they have little understanding when it comes to their super but wish they could access advice to learn more. 

A recent survey conducted by TAL found that 33 per cent of its 800 employees with super accounts said they would use financial education or tools at least once a month if they were offered by their employers. 

In particular, learning how to calculate and manage their super assets as well as having access to super calculators to better understand voluntary contributions was of interest. 

Paul Feeney, Otivo’s chief executive, is urging the government to ensure funds are providing ‘hyper-personalised financial advice’ through digital tools for members.

“We’re in the early stages of a financial crisis and more needs to be done to arm all Australians with the ability to future-proof themselves,” he commented.

“Australians claim superannuation is their most valuable asset, and in many cases their single most important asset, however as a nation we know very little about it and we rarely engage with super funds about it.”

He added that personal advice, which takes into account a member’s personal circumstances, is the only way Australians can retire with financial security and comfort. 

“With 367 Australians retiring every day over the next five years, superannuation funds are simply not set up yet to support every one of those Australians and that is a serious concern,” Feeney said.

While more than one in four Australians do not engage with their super fund, 23 per cent claim they want to increase their engagement.

Moreover, 37 per cent of respondents have begun to actively research super more over the last six months. 

Feeney continued: “This surge in interest indicates a growing realisation among Australians that their superannuation might hold solutions to their current financial concerns and financial security in the future.”

Over 10 million Australians are open to leaning into advanced technology and AI to gain better access to financial support. 

“By addressing access to financial advice for all, Australia can work towards a more financially secure and equitable future, where everyone has the opportunity to achieve their financial goals and navigate the challenges of a changing economy,” Feeney said.

Otivo additionally announced a new core functionality. When a member calls their super fund seeking advice, the fund can use the platform’s intra-fund feature to discuss personalised investment, contribution, and insurance options.
 

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