Retirement
Improving access to advice should be super industry’s ‘key focus’
Australians are least satisfied with their super fund if they acquire it through their employer, highlighting the need for more accessible advice, Roy Morgan has said.
Improving access to advice should be super industry’s ‘key focus’
Australians are least satisfied with their super fund if they acquire it through their employer, highlighting the need for more accessible advice, Roy Morgan has said.
According to the latest Superannuation and Wealth in Australia report from Roy Morgan, Australians are most satisfied (71.3 per cent) with their super fund if they acquire it through an independent financial adviser or planner and least satisfied (56.6 per cent) with funds that they came to from their employer.
Further, satisfaction with funds acquired through an independent financial adviser has increased by 5.6 per cent on the September 2016 level, while employer-introduced funds have fallen by 0.2 per cent.
Accountant-introduced funds are the second-most satisfying (68.8 per cent), followed by financial planners and advisers that work for financial institutions (68.4 per cent). Australians who came by their super fund directly through a financial institution were 64.8 per cent satisfied.
To Roy Morgan industry communications director, Norman Morris, these results are something the financial services industry needs to pay careful attention and “respond quickly” to.
He said: “Our research shows those who seek independent professional advice are much more satisfied with the performance of their superannuation. However, it seems confusion and mistrust cause many people to avoid seeking financial advice at all.
“This represents a major opportunity for financial advisers to find new ways to engage with the Australian public, especially younger audiences. If the advisers can find ways to overcome issues of trust and independence there is a huge potential market for their advice.”
Continuing, Mr Norris said improving the accessibility of financial advice needs to be a “key focus for the industry”. He said that by doing so, the sector could not only improve investment returns but also “build wealth and grow member satisfaction”.
But not many Australians trust planners
Roy Morgan said trust is “in short supply” and argued that financial planners need to work to gain a higher level of trust.
Trust in financial planners, in terms of honesty and ethics has fallen by 2 per cent this year, with just 25 per cent of respondents saying their trust in financial planners is high or very high.
However, that figure has remained fairly steady since 2009, with peaks of 28 per cent in 2011 and 2014 and a fall in 2015 to 24 per cent.
Roy Morgan suggested that the numbers reflect an industry plagued by “ongoing confusion” and called on planners and advisers to address it.
“Many of the major licensee groups, which are owned by one of the major financial planning groups but branded differently to their parent, continue to be largely viewed as independent by consumers despite their ownership,” a Roy Morgan spokesperson said.
“It is interesting to note that even when a planner came from a major fund manager there was often confusion over the issue of independence, with around a quarter of members considering them to be independent.
“Advisers showing preference for their own company’s products adds to the confusion, with 74.9 per cent of advisers across all major financial planning groups selling their own products. This is a slight drop from the previous 12 months, but signifies an ongoing potential cause of mistrust with the industry.”
Superannuation
Aware Super takes on Australia's gender retirement gap, aiming for financial equality
Aware Super, one of Australia's largest superannuation funds with a 70 per cent female membership, is on a mission to close the gender gap that sees women retire with 30 per cent less super than men ...Read more
Superannuation
Age Pension increase prompts Australians to review their finances
The increase in the Age Pension, which takes effect today, should serve as a prompt for many older Australians to ensure they're maximizing their income as cost-of-living pressures persist, according ...Read more
Superannuation
Retirement reimagined as Australian optimism meets inflation worries in 2023 super fund insights
The latest reports on retirement confidence among Australians present a spectrum of sentiments, with fresh data revealing surprising optimism in some quarters while exposing underlying concerns in ...Read more
Superannuation
Aussie retirees face a shortfall as ideal retirement nest egg doubles what super will deliver
As Australians look towards retirement, the desired superannuation balance that many believe will ensure a comfortable retirement has significantly outpaced what they are on track to actually save. Read more
Superannuation
Super funds eye 6.5% return in 2023, despite a rocky start
As the year draws closer to its climax, Chant West unveils its projection for super funds in what can only be described as a year of economic ebbs and flows. Read more
Superannuation
A deep dive into Australia’s superannuation system
Australia has a robust retirement savings system known as superannuation designed to provide financial security to Australians in their post-work years. Read more
Superannuation
50,000 super fund members impacted by data breach
Around 50,000 member records were impacted by the breach that took place earlier this month. Read more
Superannuation
Two super funds tipped to reach $1tn by 2040
KPMG has released the findings from a new review. Read more
Superannuation
Aware Super takes on Australia's gender retirement gap, aiming for financial equality
Aware Super, one of Australia's largest superannuation funds with a 70 per cent female membership, is on a mission to close the gender gap that sees women retire with 30 per cent less super than men ...Read more
Superannuation
Age Pension increase prompts Australians to review their finances
The increase in the Age Pension, which takes effect today, should serve as a prompt for many older Australians to ensure they're maximizing their income as cost-of-living pressures persist, according ...Read more
Superannuation
Retirement reimagined as Australian optimism meets inflation worries in 2023 super fund insights
The latest reports on retirement confidence among Australians present a spectrum of sentiments, with fresh data revealing surprising optimism in some quarters while exposing underlying concerns in ...Read more
Superannuation
Aussie retirees face a shortfall as ideal retirement nest egg doubles what super will deliver
As Australians look towards retirement, the desired superannuation balance that many believe will ensure a comfortable retirement has significantly outpaced what they are on track to actually save. Read more
Superannuation
Super funds eye 6.5% return in 2023, despite a rocky start
As the year draws closer to its climax, Chant West unveils its projection for super funds in what can only be described as a year of economic ebbs and flows. Read more
Superannuation
A deep dive into Australia’s superannuation system
Australia has a robust retirement savings system known as superannuation designed to provide financial security to Australians in their post-work years. Read more
Superannuation
50,000 super fund members impacted by data breach
Around 50,000 member records were impacted by the breach that took place earlier this month. Read more
Superannuation
Two super funds tipped to reach $1tn by 2040
KPMG has released the findings from a new review. Read more