Do you avoid thinking or talking about your superannuation?
It turns out, you’re not alone.
Research by CHOICE has revealed the reason why many of us are avoiding dealing with our superannuation, and it mostly down to what we don’t know or don’t understand about super.
According to the research, published last month, “unengaged super customers” are losing “huge chunks” of potential savings because they don’t know how to find the right information to help them.
CHOICE CEO Alan Kirkland described said when it comes to things we should care about, super is “about as important as it gets”.
“It’s the most significant financial asset most Australians will ever have,” he said.
“It determines our quality of life in retirement – which with rising life expectancy is an ever greater proportion of our lives. And you only get one shot at it – if you make the wrong decisions early on, they can be very hard to undo.”
So, how is relevant to older Australians such as yourself?
Well, the research targeted three different groups of people – young adults, new mothers and pre-retirees.
Each demographic had their own reasons for being unengaged with their superannuation.
CHOICE head of policy and campaigns Erin Turner said older people nearing retirement might feel they can’t rely on their super or regret not having saved enough.
“All of these feelings can lead to actual financial detriment, because people end up making bad decisions – or not making any at all,” she said.
According to CHOICE, the biggest roadblocks stopping us engaging with super include the complexity of super.
They also argue that older Australians are also taking the view that an investment property could provide them with better income in retirement than their super.
So, what’s the solution?
Well, the consumer advocate argues that superannuation needs to be reframed from “this boring, complicated thing” to get consumers thinking about it more.
“People want information, but they also want it to be easy,” Turner said.
“They need to be told why super should matter to them, and they need to be shown how to make the right decisions for their circumstances.”