Are you planning on relying on the age pension to provide an income?
Anxiety about having enough income in retirement and whether savings will last is still concerning over 40 per cent of pre-retirees, according to two separate surveys we conducted recently.
In our online survey with did with Equip, 40.7 per cent of respondents said they were unsure about whether they had enough saved for retirement, while in Equip’s 2015 Annual Member Survey conducted by CoreData, 46.2 per cent of respondents said they felt some degree of anxiety when they thought about their retirement finances.
Equip’s Executive Officer, Strategic Marketing and Communications, Geoff Brooks, said the survey results showed why education and advice had become a vital component in the mix of services offered by super funds to their members.
“There is an important emotional driver in achieving high levels of satisfaction among members – and that is confidence in their financial security heading into retirement,” he said.
“An important component of our annual survey now is tracking whether members believe our fund can help them achieve a better retirement outcome than they could otherwise expect. Quality of communications and ready access to professional and personal advice is as big a driver of confidence in the fund as investment returns and competitive fees.”
The Equip surveys reported just over 55 per cent of respondents believe they will rely wholly or in part on the government age pension to provide an income. Around a quarter of respondents felt confident about their retirement finances and thought they would have enough.
In encouraging news for the financial planning sector, up to 40 per cent said they would consult a planner for help with their retirement finances. Only one third of respondents to the online survey said they did not feel they needed a planner, with the balance already under advice.
The message about drawing a regular income from super rather than a lump sum is gaining traction with 94 pre cent of Equip members who would not consult a planner saying they would leave money invested in super and withdraw money as required.
Equip was rated the most trusted source of superannuation advice by its members, while in the online survey, 31.5 pre cent of respondents said they would first approach their super fund for retirement advice, placing super funds line-ball with family and friends as their most trusted source of recommendation.
Related links:
How to make the financial transition to retirement easier
Cash is not king when it comes to super
How to avoid running out of money when you retire