Pre-retirement planning shows boost in advice adoption and financial literacy

Preliminary results from the South Australian pilot study, conducted by Allianz Retire+ and Macquarie University, found that participants who are now post-work and gearing up for retirement have increased financial literacy knowledge, an increased likelihood of consulting a financial adviser and an overall higher confidence about their retirement.

Following the pilot, a national roll-out will commence next month, which financial advisers are also being encouraged to participate in.

“We know from recent Allianz Retire+ data that only one in six people approaching retirement are engaging with any financial advice. We view the general uptick in willingness to seek advice following the pilot as a highly beneficial outcome for the participants,” Allianz Retire+ chief product and marketing officer, Simon Aboud, said.

“This study is revolutionary in its potential and the model, if proven effective, could positively impact people’s choices and retirement confidence for generations to come.”

Macquarie University professor and project lead Joanne Earl said that advisers will be critical in the project as their professional feedback will assist in the theory of how pre-retirement planning is beneficial to Australians to develop it into a “workable advice solution”.

“They’ll have the opportunity to be at the forefront of something really progressive,” Ms Earl said.

“Having enjoyed the process, a number of our advisers in the pilot seem to have got a lot out of the experience and wish to carry over into our main study, and we are incredibly grateful for their continued support.”

Neil Griffiths

Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.

Neil is also the host of the ifa show podcast.