Negative messaging a drag on retirement adequacy
The superannuation industry needs to be careful not to deliver too many negative messages around superannuation adequacy because it risks dissuading members from maximising their super savings, according to a new white paper developed by KPMG and Challenger.
The white paper said that while the industry celebrated investment success, its members often were not capable of seeing the direct link between that success and their retirement benefits.
"They frequently see commentary that people won't have enough for retirement," it said. "While this is the case for some with broken work patterns, super is improving retirement for the majority of members."
The white paper said that without an understanding of what super can deliver in retirement, there was a danger that many people would discount the importance of super, relying only on the Age Pension instead of maximising and making the most of their savings.
"The messaging around super adequacy needs to be refocussed on engaging with members around the role of their super and therefore their super fund through their retirement," it said.
The white paper said superannuation funds needed to communicate in a fashion which made living off your super in retirement as a solution and not a problem.
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