Pre-retirees are "crystal clear" about the purpose of superannuation, believing it should provide a steady income through retirement, research reveals.
Data from a survey conducted by National Seniors Australia and commissioned by Challenger, found more than 80 per cent of 50 to 64-year-olds believe their super should be a central income source for their retirement.
While the Government has considered setting out the objective of super, Challenger chairman, retirement income, Jeremy Cooper, said the survey showed there were few doubts about its purpose in the minds of those closest to drawing down on their super.
"For senior Australians the objective of superannuation is crystal clear," he said.
"It's about retirement income. It's critical for retirees to have a steady, dependable income from super to sustain their lifestyle in retirement."
The results reflect a similar finding from the National Seniors Australia's 2015 report, which found 80 per cent of pre-retirees believed that super should provide an income stream for retirement.
While the majority of those late in their working lives seek super as a source of income for retirement, many expect Government pensions and allowances to supplement their income from superannuation.
"This shows that older Australians understand that while super is the main game for retirement, the Age Pension can make up a meaningful proportion of retirement income," Cooper said.
"This can be comfort to many Australians, but it's there as a back-up, not a catch-all."
Amid a challenging market environment, three super fund CIOs have warned against ‘jumping at shadows’.
The professional body is calling for the annual performance test to transition to a two-metric test, so it better aligns with the overarching duty of super fund trustees to act in the best financial interests of their members.
AustralianSuper, Rest, and HESTA agree on the need to retain and enhance the test, yet they differ in their perspectives on the specific areas that warrant further refinement.
Australia’s second-largest super fund has confirmed it is expanding its presence in the UK following significant investment in the region.
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