Super returns renew faith
Super returns renew faith

Bumper investor returns have not only boosted the balance of Australian superannuation funds, they have also helped reduce retirement anxiety among Australians.

An annual study of attitudes to super has found the proportion of Australians worried they do not have enough retirement savings has fallen from 62 per cent to 52 per cent over the past year.

At the same time, the proportion of Australians who believed the superannuation system provides stability and certainty rose from 53 per cent to 64 per cent.

The annual study was carried out by the Financial Services Council and investment group ING.

Council chief executive John Brogden said confidence in the system had been helped by bipartisan support to leave the tax and policy settings alone.

"A second year of double-digit returns for superannuation has clearly had a positive impact on sentiment," he said.

A remarkable 86 per cent of Australians support the super system, down from 89 per cent last year, and 83 per cent of Australians see it as essential for providing a comfortable retirement.

However, the study shows the public debate about the lack of transparency about fees charged by superannuation funds is having an effect on attitudes.

More than 70 per cent of respondents in the study said there was a lack of transparency about super funds, their fees and how they worked, up from 66 per cent last year.

In response to new questions, only 15 per cent of people were definitely aware of the fees their fund charges and 49 per did not know their fees.

Lower fees would be a key reason for 53 per cent of people to switch. Mr Brogden said the Federally-imposed MySuper regime would provide fund members with detailed information about investments and fees.

The West Australian

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