Although many Australians worry about their retirement prospects, a small increase in super contributions can make a big difference and help alleviate concerns around affording a comfortable retirement, according to Investment Trends.
The tenth issue of the 'Retirement Income Report', which surveyed more than 5,000 Australian adults, found only a quarter of the prospective retirees believed they were contributing enough to maintain a comfortable level of retirement.
Across this group, on average, they said they contributed 11% of their annual household income into their super fund, only 1.5% per annum above the super guarantee (SG) level of 9.5%, indicating a small amount can make a big difference to confidence levels.
“While many Australians worry about their retirement prospects, there is only a small difference in superannuation contribution levels between those who fear being unable to retire comfortably and those who are positive about their prospects,” Investment Trends’ senior analyst, King Long Choi, said.
“Even among lower income households, a slight increase in super contribution levels corresponds with greater confidence in retirement outcomes.”
At the same time, Australians struggled with finding relevant, accessible retirement -related information with super funds remaining oftentimes their most frequent point of contact for information on retirement.
“It is crucial that relevant retirement information is easy to find, as those who successfully find the information they need are highly likely to take further action – almost 90% of them,” Choi said.
“And the actions these people take are important ones, most often preparing a will, seeking financial advice and making voluntary super contributions.
“Our research also reveals that Australians who were successfully in seeking information from their super fund were more likely to engage with their fund, stay with their fund and consolidate other super monies to their fund.”