Three-in-five retirees invested in a superannuation fund do not know where their super is invested and only 18% believed their investments would be safe during an economic downturn, according to Allianz Retire Plus.
A survey conducted by the firm found super complexity and lack of awareness had exacerbated the economic impact of the COVID-19 pandemic on many retirees.
About 70% of retirees in a fund did not feel well educated about managing their retirement income and only on-third understood the investment options available to them in retirement.
Allianz Retire Plus chief executive, Matt Rady, said: “The survey shows too many retirees are confused about superannuation don’t know enough about how their retirement savings are invested, or how secure their money is.
“Around 73% did not agree that there were adequate options available to manage their retirement income.”
The survey also found that only one-third of retirees felt confident in their financial position and 66% did not believe the super system would provide them with a dignified retirement.
“These results demonstrate that the Australian superannuation system, which is lauded as one of the best systems globally, is not working for a great deal of the people it’s designed for. COVID-19’s impact has exposed shortcomings in retirement product design, access to financial advice, and super education,” Rady said.
“We have a huge opportunity to get the Australian system right and while there are pressing matters to attend to post COVID-19, this is one of them. There’s a real danger here if policy change isn’t swift and imminent.”
Only 18% of those surveyed felt their investments would be safe in an economic downturn and under a third of current and prospective retirees said they were happy with the Federal Government’s response to COVD-19 policies that affected their retirement.