Super funds attracting demand for retirement advice
While Australians still primarily turn to financial advisers for retirement advice, around a quarter of Australians are turning to APRA-regulated super funds for advice, according to research by Investment Trends.
The Investment Trends 2017 Retirement Income Report which surveyed 7,305 Australians during October last year found that 33 per cent of respondents were most inclined to turn to a financial adviser for help with their retirement goals.
The survey also found that 25 per cent of respondents would turn to their super fund for assistance.
Investment Trends senior analyst King Loong Choi said there are opportunities for both financial planners and super funds given the level of interest shown by Australians for further assistance.
“Right now, individuals with a super balance less than $100,000 are just as likely to seek help in achieving their retirement goals from planners as they are to seek help from their super fund,” said Mr Choi.
“However, the story is different among those with a super balance greater than $100,000, where financial planners are significantly more preferred.”
The survey also found that Australians are feeling slightly more prepared for retirement compared to 12 months ago with 46 per cent of Australians feeling prepared, up from 44 per cent in 2016.
“Fewer Australians are worried about external factors such as market performance and regulatory changes eroding their super savings compared to 2016, and this has led to more individuals feeling equipped to face retirement,” said Mr Loong.
Despite the uptick in sentiment, however, the results indicated that many Australians are concerned they will not be able to reach their retirement goals, and only one in three believe they can do so without the help of professional assistance.
“This highlights the important role that advice providers play in helping Australians along their retirement journey, and in helping them achieve their retirement goals.”