The number of working Australians who say they will rely on superannuation as their main source of retirement income has dropped by almost 30 per cent, according to a survey commissioned by the Institute of Chartered Accountants Australia.
The survey showed 50 per cent of working Australians believe they will rely on superannuation as their main source of their retirement income, down from 79 per cent three years earlier.
The decline reflects the effect the economic downturn has had on Australian workers and their understanding of its impact on superannuation, said Institute of Chartered Accountants chief executive Graham Meyer.
Sixty five per cent of respondents also indicated that the 9 per cent compulsory super component alone would not provide enough savings for the average Australian worker in retirement.
Meyer claimed that further education is still required to help people understand the benefits of using their superannuation to save for retirement.
"Improving financial literacy skills is an ongoing issue that will assist many Australians to make better and more informed financial decisions about their future," he said.
The Australian Prudential Regulation Authority (APRA) has modified the additional licence conditions imposed on the trustee.
AFCA’s chief executive urged member firms to up their internal dispute resolution processes in order to cut down on costs owed to the authority.
ASFA’s CEO called Joe Longo’s comments on super “unfounded and unfair”, after the ASIC chair said fund trustees don’t always “know their business”.
Less than a month after being ordered to pay $27 million for failing to merge duplicate member accounts, Australia’s biggest super fund is again the target of a suit launched by the corporate regulator.