Staggering new research results show 66 per cent of the employed public under the age of 40 years of age have a very limited knowledge about superannuation.
Staggering new research results show 66 per cent of the employed public under the age of 40 years of age have a very limited knowledge about superannuation.
Sweeney Research also reports that 50 per cent of people in their prime accumulation years (40 to 49 year olds) are as much in the dark about super as their younger counterparts.
"The industry has clearly failed these people," points out Allan Griffiths, the Managing Director of Norwich Union Life Australia Ltd. "It is crucial that during their prime accumulation phase Australians understand superannuation or they may end up destitute in retirement."
Norwich Union is addressing this issue through Wealth Solutionstm, a new information and education program it has designed for financial advisers, the people in the best position to provide honest advice to superannuants. The program's flexibility ensures that the distinct needs of clients across the age spectrum are recognised and catered for.
The report documents the findings of the quantitative study. It was tailored to explore the general public's awareness and knowledge of superannuation. The information was obtained from a total of 400 samples; 150 from Melbourne, 150 from Sydney and 100 from Brisbane. Those surveyed were in full or part time employment and in a superannuation fund. Equal numbers of male and female were interviewed.
"The major reasons underlying this high self confessed level of ignorance are clear," according to the research:
- Just not interested
- Don't know much about it
- It's too complicated
- Haven't studied it yet
- It's all done for me by an employer
- Don't receive much information.
The Sweeney figures also indicate that 75 per cent of people between the ages of 20 and 39 years old have never spoken to a financial adviser. This is compared to the 52 per cent of 40 to 59 year olds and 71 percent of over 60 who have sought out investment advice regarding their retirement income.
"Extensive research has enabled Norwich Union to design Wealth Solutionstm, a comprehensive education program for advisers that caters to the needs of all our clients," added Mr Griffiths.
"The employee program consists of a number of educative modules. Each module provides clear and simple information on financial issues and life changes that will affect our superannuation planning"
" We are committed to ensuring our adviser network is accessible and relevant to everybody. They are entrusted with providing information that guides employees through the various stages of wealth creation regardless of their age or disposable income. We strongly encourage people of all ages to seek out professional advice in regards to their financial retirement plans!" said Mr Griffiths.
Wealth Solutionstm is designed to equip financial advisers to educate groups of employees combines a series of face to face seminars with print, e-mail and web based channels to ensure information is accessible and convenient for all.
For further information, please contact:
Simon Morgan,
Group General Manager
Public Affairs
Telephone: (03) 9829 8892