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Pre-retirees confused about super
Many Australians approaching retirement don’t understand the meaning of fundamental superannuation terms, a Suncorp Life survey has found.
One-third of the 288 respondents, who were aged between 50 and 64, could not define ‘transition to retirement’, the survey found.
The results for women were worse than for men; more than 42 per cent of women surveyed had not heard the term ‘transition to retirement’, compared to 35 per cent of men, and almost 60 per cent had not heard the term ‘non-concessional contribution’, compared to 47 per cent of men, according to Suncorp Life executive general manager David Carter.
The results are a sign the industry needs to speak in plain English to customers and address financial literacy, he said.
Many respondents offered confused definitions for terms such as ‘transition to retirement’, and this lack of understanding meant they could potentially be missing out on extra retirement savings, he said.
“Not understanding the terminology may cause investors to feel they lack control of their money and believe it’s simply too hard to ensure their super is being managed effectively,” Carter said.
Suncorp Life launched its ‘Simplicity Principle’ last year, which aims to help customers become more involved in managing their superannuation investment, he said.
AUTHOR
Mike Taylor
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