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Worried Aussie investors support SG rise
An overwhelming majority of Australian investors support a rise in the superannuation guarantee (SG) to 12 per cent, with half still expecting to rely on the age pension when they retire, a BT survey has found.
Two-thirds of respondents knew their current superannuation balance and more than half had embraced a long-term view on investing, according to the survey of 1,000 people who were representative of ABS weightings. Overall, 87 per cent supported a gradual rise in the SG to 12 per cent.
“Awareness of super adequacy is growing among investors, but there remains a lack of conviction in superannuation fully funding their retirement,” said Melanie Evans, head of superannuation for BT Financial Group.
“Engagement must precede adequacy awareness, so we are encouraged that investors are signalling familiarity with their super, and are supportive of measures to see savings boosted.”
Women were more concerned than men over their retirement adequacy, the survey found.
“There is a clear engagement lag when it comes to women and super, particularly for those who have spaced their career in between family and personal commitments,” Evans said.
“It is critical that women stay familiar with their superannuation savings goals and where their savings are invested — any long-term project needs a goal, and superannuation is no different.”
Showing that investors did not panic during the global financial crisis (GFC), more than half of the 34 per cent of people who had been making voluntary super contributions before the GFC continued to do so, the survey found.
Of concern to the investment industry was the fact that 70 per cent of investors believed that property had outperformed shares over the past two decades, with just 22 per cent correctly stating that shares had been the best performing asset of the last 20 years, according to BT investment specialist Michael Bailey.
Such a defiance or denial of extensive history signals a serious weakness within the investment industry, Bailey said.
AUTHOR
Mike Taylor
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