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.
Michael Lovett, who left the investment firm just three months after launching its Vanguard Super offering, has taken up a chief executive role at an Australian asset manager.
The Central Bank of Ireland has granted the approval of Equity Trustees’ exit from its Irish operations, with the transaction expected to be complete on 30 April.
Super returns continued to climb in March, raising hopes of delivering double-digit returns by June depending on the performance of this next quarter.
The dedicated super fund for emergency services and Victorian government employees is under fire for unpaid entitlements to transport employees, which could exceed $40 million.
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