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Super industry misleading Australians about their retirement needs: Super Consumers

Today Super Consumers Australia is announcing it is developing new savings targets which accurately reflect what the community expect from their retirement.

Today Super Consumers Australia is announcing it is developing new savings targets which accurately reflect what the community expect from their retirement. This comes in response to the recently released Retirement Income Review which showed the super industry is misleading consumers about how much they’ll need in retirement. 

“The industry directs consumers to retirement targets that are only appropriate to the top 20 percent of income earners and they ignore the needs of retired renters. Super Consumer’s new people-centred retirement targets will be released in 2021 and will help people understand what savings target is right for their situation,” says Xavier O’Halloran, Director of Super Consumers Australia.

In the meantime here are three tips you can follow right now to secure a better retirement

“Whether you’re 20 years old or 60 years old, there’s things you can do right now to secure a better retirement in the future,” says O’Halloran 

1. Get to know your super

“Log onto MyGov and look at your super” says O’Halloran.

“Check your super fund, find out your balance and see if you can do better. If you have more than one fund, you could be paying unnecessary fees. MyGov makes it very easy to consolidate your super into one fund, which can save you a lot in the long run.”

Super Consumers says:

  • Find out your fund or funds and do some research about their long-term returns and insurance,
  • Know your super balance,
  • See if you can save on unnecessary fees by consolidating your super.

2. Think about the retirement you want

“The super industry is misleading Australians about their retirement needs. Consumers need reliable independent guidance to plan for retirement,” says O’Halloran. 

“Think about the kind of retirement you want. Do you want to stay in your community, surrounded by family and friends? Or travel the world? Whatever your dream, the decisions you make now will dictate what’s possible.”

The project will be funded by Ecstra Foundation so that Super Consumers can help Australians plan for retirement, free from super industry bias.

“Super funds make more in fees the longer and more money you invest with them, so they are incentivised to say more is always better. The truth is there are trade-offs between your living standards now and making additional savings for retirement, independent guidance can help you weigh those trade-offs.” 

Australians will have independent guidance to help set realistic retirement goals for their benefit - not the benefit of the super industry.

3. Set a calendar reminder

“Your superannuation is easy to forget about,” says O’Halloran.

“We recommend putting a reminder in your calendar every year to check in. Superannuation relies on a number of complex factors to grow your retirement fund. The fund your employer chose five years ago, might not be the best fund for you now. As we head into the new year, why not make January your month each year to check in on your super and make sure it’s still meeting your needs?”

Read more from Super Consumers Australia about the six fundamentals of super.

Background

Super Consumers Australia is an independent, non-profit consumer organisation established in 2019. Its establishment funding is set to run out in December 2021. Super Consumers is seeking ongoing funding to continue to develop non-commercial, conflict-free consumer resources and advocacy. 

Ecstra Foundation is a grant making charitable organisation committed to building the financial wellbeing of all Australians within a fair financial system. We're delighted to be partnering with Ecstra. The $250,000 in funding it has granted will provide project based funding for our organisation to develop retirement standards that will have a positive, lasting impact on the financial wellbeing of Australians. The project will be delivered in October 2021.

Media Contact: Xavier O'Halloran, 0415 823 607 xohalloran@superconsumers.com.au