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Apathy falling, but lack of trust in super a concern
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| David Anderson
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Apathy towards superannuation is falling away, but trust in super is down and fewer people feel they are prepared for retirement, according to the Mercer Superannuation Sentiment Index.
The online survey of 1,033 full-time working Australians aged 25-65 years was conducted in December 2009, and revealed that sentiment towards super declined from a rating of 42 out of 100 in December 2008 to 37 out of 100 in December 2009. Only 41 per cent rated their superannuation fund as trustworthy, a decline of 11 per cent since December 2008. While 58 per cent said they were ‘very optimistic’ or ‘fairly optimistic’ the economy would improve following recent share market gains, only 11 per cent of working Australians feel they are thoroughly prepared for retirement.
Respondents listed loss in value, not having enough funds for retirement, low growth and low returns as their top concerns about super.
Despite a general perception that many Australians are apathetic towards their super, the survey showed that 17 per cent rated their knowledge of superannuation as strong or sophisticated, while 55 per cent are aspiring to reach that level of knowledge.
Managing director and market leader at Mercer, Australia and New Zealand, David Anderson, noted in the report that while recent events have tested faith in the system, “they have also shaken Australians out of the apathy that typified the attitudes many have had towards their superannuation”.
However, the survey revealed that gaps in knowledge remain. One in five did not know the investment option their super was in, and one in four did not know their current superannuation balance.
The survey also found that in looking for advice, 48 per cent of investors considered approaching their super fund while 43 per cent considered a financial adviser.
Anderson said with superannuation now the subject of two significant government reviews, the industry has a “once-in-a-generation” opportunity for the government to make changes that will increase the effectiveness and robustness of the super system.
AUTHOR
Mike Taylor
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