Australians support super funds providing ‘basic’ advice: FSC

According to polling conducted by CT Group on behalf of the Financial Services Council (FSC), 76 per cent of Australians support superannuation funds being able to provide consumers with basic advice and guidance about which retirement products to choose based on their personal circumstances and goals.

In contrast, just 4 per cent of respondents said they opposed super funds being able to provide this advice. The remaining respondents did not feel strongly either way.

The research also found that this support was consistent among all age groups and genders, though the highest level of support was among those approaching or in retirement. Among 55- to 64-year-olds, 79 per cent support retirement advice being provided by their superannuation fund, while 82 per cent of those aged 65 and above agreed.

The research also showed that almost three-quarters of the respondents want to choose or tailor their retirement rather than receive a default product.

The FSC noted that 77 per cent of Australians who are between 45 to 55 years old, a “politically sensitive cohort given they have saved through superannuation for their entire working lives and would be the first to be affected by the government’s proposed changes”, indicated a preference for control over their retirement savings.

“Consumers’ preference for control over their retirement savings is a cautionary warning to superannuation funds that are considering whether to impose ‘one-size-fits-all’ solutions onto members at retirement,” said FSC chief executive Blake Briggs.

“Retirement is complex, and every family is unique, making affordable and accessible personal financial advice that tailors retirement outcomes for each household the key to delivering high-quality retirement outcomes.”

Additionally, 70 per cent of respondents said they trust themselves over their superannuation fund to make decisions about which retirement products to use, while 76 per cent said they were likely to seek advice on retirement products.

Among this group, 62 per cent said they were likely to seek it from a financial adviser, followed by their super fund (46 per cent), and the government (14 per cent).

“National polling shows the Treasurer should be careful not to default superannuation consumers into government-designed retirement products as Australians overwhelmingly support making their own financial decisions at retirement, with the support of affordable financial advice,” Mr Briggs said.

“There is significant risk for the government if they were to try and convince Australians that politicians know best determining which retirement products they should use.”