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Super members still under-educated
Concern over the future of superannuation created by market volatility is driving demand for more education, according to Mercer's Superannuation Sentiment Index study.
The survey found only 16 per cent of respondents rated their current knowledge of super as 'strong' or 'sophisticated', while 54 per cent want to achieve this level.
Mercer's outsourcing business leader for Asia Pacific, David Anderson, said the good news is that many Australians want to know more about their super. However, their interest is likely to be driven by concern, with 58 per cent of working Australians expecting to be less comfortable in retirement than they are now.
"We need an education revolution in superannuation. Australians continue to see superannuation as important in saving for retirement, but their faith in the system may be dwindling. It's time for all super funds - from the smallest through to the large multi-employer industry funds - to step up to the mark with a specific 'call to action' for individual members through more personal information, education, and professional advice," Anderson said.
The survey of 1,000 working Australians found the number who were very or extremely worried about the impact of share market volatility on their superannuation rose from 11 per cent to 21 per cent in the last six months of 2008, while the number of people rating superannuation as a poor or fair way to save for retirement doubled from 17 per cent to 34 per cent in the same period.
The survey showed 53 per cent of people expected to contact their super fund when looking for advice.
"Australians trust that superannuation is absolutely essential in creating a comfortable retirement, but now it's up to the superannuation industry to evolve superannuation into a universally embraced community product that Australians are engaged with and confident about," Anderson said.
AUTHOR
Mike Taylor
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