Super members know not what they do

Mike Fitzsimons

A recent survey from Plum suggests Australians are better informed about superannuation than ever before, with 80 per cent of those surveyed recognising the superannuation guarantee alone would not allow them to achieve their retirement goals.

However, despite being armed with this knowledge, individuals are no more likely than they were before to contribute additional money to their superannuation.

The Plum Super Fitness Survey indicated that 51 per cent of respondents passed the survey’s superannuation knowledge test, compared with 37 per cent in 2001.

According to Plum, a general finding of the survey was the general public still has some way to go before catching up to the level of superannuation financial literacy of Plum members, with around 60 per cent passing the knowledge test since 2001.

It found 60 per cent of the sample were concerned about their level of preparation for retirement, but did not know how much superannuation they would need to achieve their desired retirement income, or significantly underestimated it. This was despite two out of three respondents intending to retire between the ages of 55 and 65.

Plum managing director Mike Fitzsimons said: “It is encouraging … that Australians are becoming more knowledgeable about superannuation due to increased public awareness of the need to adequately save for retirement, yet too few are acting.”

With over 70 per cent of Australians interviewed during the survey indicating they wanted to find out more about retirement planning, and 67 per cent wanting specific help from their superannuation provider, “Members are asking for education programs that will help them reach meaningful outcomes”, Fitzsimons said.

Another finding was that 30 per cent of people wanted superannuation to be simpler to understand and taxed more favourably.

It also found only 37 per cent of respondents were aware that superannuation is taxed at the three stages of entry, investment and payment, and that there has been a considerable decline in the perceived risk of investing in shares and property.