The Super Retirement Approach

17 May, 2024

Over two thirds (69%) of Australians with a superannuation fund (“Super”) feel optimistic about their future, though almost half (44%) acknowledge that they might need to make sacrifices to meet their desired retirement lifestyle.

These were some of the findings of a survey commissioned by World Gold Council (WGC) to gain greater insight of Australians’ approach to, understanding of, and sentiment towards, financial planning for retirement.

79%

Have a Super

45%

Super balances
less than A$100k

40%

Contribute under A$10k
a year to their Super

Most people recognise the importance of having a Super, which makes them feel more secure about their future, but many acknowledge that it should not be the only source of funding for a comfortable retirement. The vast majority of individuals have a good understanding of their financial affairs, with only 7% of Super investors unaware of their balance.

Highlights:

Attitudes towards retirement

69%

Feel financially optimistic about retirement

58%

Confidence in understanding the details of their Super and how it works

54%

Feel they know what their retirement fund(s) are invested in

Attitudes towards Supers

82%

of Super investors have just the one account

52%

Have consolidated their Super accounts

61%

Feel more secure about retirement having a Super

Approaches towards DIY and Financial Advice

54%

Prefer to take an active role in managing their Super

40%

Taking their own decisions on their Super receive professional advice first

59%

Who do not actively manage their Super take no professional advice

Gender differences

61%

of women are optimistic towards retirement vs. 78% of men

40%

of men add at least $10k to their Super annually vs. 22% of women

31%

of women have no other sources for retirement other that their Super vs. 15% of men

Generational differences

67%

18-34 year olds using financial advisors compared to 48% of 35+

79%

35-44 yr olds feel their super should not be the only thing funding their retirement

48%

45-54 year olds know what their Super is invested in. The lowest among all age groups

Attitudes towards gold

70%

with a Super would likely choose an allocation to gold if given the choice

79%

aware of gold in their Super are optimistic about retirement

33%

People not invested in gold, were aware that Supers can invest in it

Key Takeaways

The results of the survey suggest that many Australians are taking action to ensure they will be reasonably comfortable when giving up work. Australia is viewed as one of the best retirement income systems in the world (fifth out of forty seven countries)¹ , but like all retirement systems, it is not without some challenges. Our survey found:

A gender gap exists in education and actual value of Super balances (especially at the higher level). Therefore it is not surprising that optimism towards retirement is lower among women. These findings are consistent with a report published by KPMG.²
Gen-Xers are the least active and knowledgeable around their Supers, which is possibly due to the transition from DB to DC early in their working lives.
People who leverage a financial adviser are not only much more likely to understand what their Super is invested in, but are far more optimistic about retirement. Two thirds of people willing to take risk in their investments receive professional advice, and 86% of risk takers feel optimistic, that number lowers significantly to 57% among risk avoiders, of which only a third receive any advice.
With more than two thirds of Australians who currently hold a Super likely to choose gold, sentiment towards the precious metal is high. However, there is a possible education gap, with some possibly making an incorrect assumptions that they have exposure to gold in their default and/or managed Super, which in the vast majority of cases, is not true.

Footnotes

¹ Mercer Cfa Global Pension Index Report

² KPMG The Gender Super Annuation Gap

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