Pre-retirement planning shows boost in advice adoption and financial literacy

The study found that participants who are now post-work and gearing up for retirement have increased financial literacy knowledge, an increased likelihood of consulting a financial adviser and an overall higher confidence about their retirement.

After completing the intensive three-module course – a mix of online and one-to-one advice activities – participants on average revised their expected retirement ages and reported higher confidence in achieving the intended target date.

Simon Aboud, Allianz Retire+ chief product and marketing officer, said the pilot displayed promise for the main study, at a time when advice adoption levels in the pre-retirement segment remain worryingly low.

“We know from recent Allianz Retire+ data that only one in six people approaching retirement are engaging with any financial advice. We view the general uptick in willingness to seek advice following the pilot as a highly beneficial outcome for the participants,” commented Aboud.

“This study is revolutionary in its potential and the model, if proven effective, could positively impact people’s choices and retirement confidence for generations to come”. 

Following the successful completion of a holistic retirement planning pilot study in August 2021, Macquarie University, in collaboration with Allianz Retire+, has called for financial advisers to join the Australian Research Council linkage project, as it’s cleared for a national rollout.

The landmark project will commence nationwide in March 2022 and combines expertise from Macquarie University and Allianz Retire+ with academic affiliates from UNSW and the University of Western Australia. The longitudinal study will examine how a range of inputs to pre-retirement planning – spanning career, health and financial guidance – may impact retirement outcomes for everyday Australians. 

While seeking to build more detailed evidence on holistic retirement advice, the study also aims to deliver innovative retirement planning training for financial advisers. 

Planners will also gain training and insight into the broader multidisciplinary approach that supports the holistic advice process, according to Allianz Retire+.

In exchange for a significant number of CPD points, the project team now seeks expressions of interest from registered financial advisers with experience in dealing with retirement planning-related issues to provide general financial advice sessions.

“Our adviser partners are critical to this project as their feedback will help us translate the theory of the program into a workable advice solution. They’ll have the opportunity to be at the forefront of something really progressive,” said project lead and Macquarie University Professor Joanne Earl.

“Having enjoyed the process, a number of our advisers in the pilot seem to have got a lot out of the experience and wish to carry over into our main study, and we are incredibly grateful for their continued support.”