Many Australians still do not understand enough about their superannuation funds, including how they’re actually invested or whether they’ll have enough in retirement.
This is one of the bottom lines of an Essential Media poll commissioned by the Australian Institute of Superannuation Trustees (AIST) and released at the Conference of Major Superannuation Funds (CMSF) this week.
The poll found that many Australians do not have a clear idea where their fund invests their super savings, with 45 per cent saying they "didn’t know" how superannuation in a balanced fund was typically invested.
It also found only 15 per cent of respondents thought correctly that a ‘balanced’ default investment could have more than 50 per cent in growth investments.
The poll showed that while more than 75 per cent of fund members had opened and read their most recent annual or half-yearly statement, less than half read it thoroughly or noted their investment returns.
Commenting on the poll, AIST chief executive Fiona Reynolds said it highlighted the need for funds to better communicate with their members using plain language to give a clear understanding of how and where superannuation savings were invested.
"As we head towards 12 per cent and account balances rise further, people will need to start thinking more about their super, particularly as they get closer to retirement," Reynolds said.
"Clearly intra-fund financial advice has a role to play here, as does meaningful disclosure about super investment options on websites and elsewhere," She said.
However, the poll suggested that social media might not be the ‘silver bullet’ to better engagement, with 50 per cent of superannuation fund members saying they would not use a smart phone App that enabled them to look up their super fund investment returns and other information.
Younger people, however, were more likely to use an App (53 per cent).
