One in four Australians have abandoned superannuation as an integral part of their retirement savings strategy according to an Australian Institute of Superannuation Trustees (AIST) survey.
The survey – involving 1500 people and conducted by The Leading Edge on behalf of AIST during mid-March – found 25 per cent of respondents were not depending on super as an important element of their retirement plan compared to other investments and choices.
It found that nearly 60 per cent of Australians thought super was too risky and were worried about funding their retirement – two of five Australians felt super was too complex and did not understand it.
Only 30 per cent of respondents were happy with the performance of their super fund in the past two years and this was despite improved performance of the average balance super fund which exceeded expectations and returned nearly 12 per cent in 2012, AIST stated.
AIST chief executive Tom Garcia said the results were a reminder to super funds that despite improving investment returns, many Australians remained disengaged and nervous about their retirement savings.
"It appears that the volatility that we've seen in super fund returns since the global financial crisis is still hitting confidence and causing concern among members," said Garcia.
"Despite some improvement in the engagement of super fund members in recent years, the industry still faces many challenges in terms of simplifying super and helping people understand how it works and why investment risk may be worth having."
Some super members indicated they would switch to a self-managed super funds (SMSFs) with 16 per cent of respondents saying they "will probably" or "definitely will" consider an SMSF in the next 12 months.
