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Advice at any age will enhance retirement: Sunsuper

Posted 28 August, 2017

Source: Financial Standard

 

More than half of Australian adults say they want to spend retirement travelling, yet two thirds don't have a plan for how they will live in retirement, according to Sunsuper.

More than 70% believe they will rely on the Age Pension, while 40% don't know or haven't thought about using superannuation to fund retirement, and less than 40% say they are likely to add additional funds to their super today.

When questioned on plans for super upon retirement, 36% said they would consider opening an income account to take out regular payments and 42% said they either hadn't thought about it or had no idea. More than 10% said they would take it out as a lump sum while 9% said they would reinvest it.

Sunsuper's head of advice and retail distribution Anne Fuchs said the figures are cause for concern, and place greater urgency on the need for good financial advice.

"For the 63% of workers who do not have a retirement plan, getting advice at any age will make a difference later in life - which might mean the difference between that trip overseas each year," Fuchs said.

"We know that those who get advice are generally better off in retirement so we have made significant changes to our business, to make it easier for members to get the right information and easier for advisers to work with us."

When it comes to retirement, dreams tended towards travelling around the world or Australia, while others delighted at the prospect of being at home "with my feet up", or helping raise the grandkids. Only 9% listed volunteering as their dream for retirement.

At a media event earlier this year, ASFA chief executive Martin Fahy said he believes the definition of retirement needs to move away from recreation and pursue a higher purpose

"It's unfulfilling, very expensive and economically draining. Somewhere out there we need some way of transforming our conception of retirement away from recreation and the associated consumption and towards a re-creation of a higher purpose," Fahy said.

"That would sit uncomfortably with many people. It's not about recreation or working until you fall over - but it is about some sort of higher purpose that gives definition tor retirement."

Fahy added the key player in this transformation will be baby boomers.