Super industry needs to educate consumers: Mercer
Australia's superannuation industry needs to better prepare consumers for the realities of retirement, with research revealing the average Australian will outlive their super by five years.
Data from Mercer's ‘Expectations versus reality of retirement' survey showed that 40 per cent of Australians were forced into earlier retirement before they were financially ready, due to redundancy or for health reasons.
While half the population underestimated their life expectancy by more than two year, with one in four white collar workers living four years longer than average, the research found.
Mercer's Managing Director and Pacific Market Leader, David Anderson, said the increasing life-expectancy of Australians flagged the need for super funds to take proactive steps to prepare clients for retirement.
"The superannuation industry has a responsibility to educate consumers and provide innovative solutions to help during retirement as well as leading up to it," he said.
"We're beginning to see a wider range of solutions emerge as the industry shifts its focus from accumulating wealth to providing an income throughout retirement — to the very end — and this is encouraging for Australians."
The research also revealed that almost half of all the moment surveyed were concerned about the state of their finances in later life, while a third of men were.
It also found that two thirds of retired respondents said they would "simply be careful" with how they used their savings to combat longevity concerns.
While only one in three respondents said they would engage with a financial advisor to protect them against longevity risk.
AUTHOR
Nicholas O'Donoghue
Nicholas is a journalist for Money Management and Super Review. Nicholas has several years experience as a journalist, reporting and managing websites for various news publications covering the medical and pharmaceuticals sector.
Recommended for you
The fund has launched a new campaign after finding many older tradies have lacked confidence understanding entitlements and missed pension income.
Unions and the Opposition have raised fresh concerns about APRA and ASIC’s failures amid fallout from First Guardian and Shield.
UniSuper chief investment officer, John Pearce, has shared his thinking behind why the $158 billion superannuation fund is yet to invest in cryptocurrency.
A new report has highlighted regulatory settings restricting super funds and reducing potential retirement balances for millions of Australians.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
211.16 3 y p.a(%)
2
Loftus Peak Global Disruption Fund Hedged
121.06 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
72.47 3 y p.a(%)
4
Paradice Australian Mid Cap A
69.09 3 y p.a(%)
5
Smarter Money Long-Short Credit Investor USD
68.96 3 y p.a(%)
