Q. After you reach retirement age, what do you expect will be your main source of income?

* Based on respondents aged under 65.

34% of those aged under 65 believe that superannuation will be their main source of income in retirement. 27% think they will depend more on the age pension and 20% on other investments.

Men were more likely than women to think super would be their main source of income (38%/31%).

46% of those earning less than $1,000 pw think they will rely more on the age pension while 42% of those earning $1,000+ pw think their super will be their main form of income.

Richard Watts discusses the implications of the Productivity Commission’s recommendations to change the default super arrangement.

There’s been some big shake ups in the world of super in the past six months. And one of the biggest is the Productivity Commission’s call to change the way workers are channelled into default super funds. At the moment, the default fund is most often an industry fund but the recommendations pave the way to give retail funds a bigger slice of the $7 billion a year super pie.

Instead of the current system where unions and employers choose the default fund, the PC recommends that Fair Work Australia or another independent body choose who qualifies to be a default fund.

Richard Watts, from Industry Super Network, tells 3Q that he is receptive to a merit based system if it means retail funds meet the same governance arrangements and produce returns equal to the industry funds.

Ian Silk shares some frightening statistics about our lack of literacy when it comes to super and investing.

At a time when people are being asked to make more financial decisions than ever before, study after study shows the vast majority are overwhelmed by increasingly complex transactions.. It’s a startling fact for a country with the greatest number of shareholders in the world.

When it comes to super, as many as 43% of people rate themselves as having “none” (8%) or “only minimal” (35%) levels of knowledge about superannuation. CEO of AustralianSuper Ian Silk explains why one solution to start financial education at school level and embed the basic concepts could be the answer.

Paul Schroder says the nature of our work is changing and the significance and reliance of super will increase — especially as we are all living longer.

In 2002, for every person aged 65 and over, there were about 5.3 people working. By 2043, this will decrease to about 2.5 people. That means less people doing more work to maintain health and other services for a burgeoning older population.

Simultaneously, the nature of work has changed so that there is more contract, casual and self employed workers. Australian Super’s Paul Schroder tells 3Q the great challenge for super is to ensure these people continue to make contributions to secure their retirement. Considering one in three children born today will reach 100, super should take equal priority to the family home when it comes to finances.

Matt Linden believes the Government’s latest changes will make super simpler, accessible and more relevant for those who’ve taken their eye off the ball.

How much do you know about your super fund? Who is responsible for looking after your savings? Where and how is your money invested? Who runs the fund?

If you don’t know the answer to many of these questions, you’re not alone. While super is now the biggest asset after the family home, few take an active interest in how it is managed. Because super is compulsory and locked away until retirement, most of us assume it will be there when we need it and focus our financial attention on the here and now.

But Industry Super Network’s Matt Linden tells 3Q the Government’s new measures will make it easier for members to access and understand information about their account.

Peter Lewis dissects a survey which shows some alarming misconceptions about the nature of their own super.

Some recent polling by EMC shows that not only are people underestimating the amount of money they need to retire on, they also have no idea of how much they will have in reality.
However, there is one common factor. Peter Lewis tells 3Q that most people believe their super will not meet their expectations.

It’s increasingly clear that Greece’s woes are partly to blame on its public pension system — over generous, over subscribed and now underfunded.

Like the rest of the western world, Australia also has an ageing population and some sections of the population are reliant on the government pension.

James Coyle from AustralianSuper tells 3Q that our superannuation system keeps our economy strong and individuals protected. Super is not only a tax-effective way to save, it also reduces pressure on government funding because less people are solely reliant on the age pension.

Although our super savings took a beating in the GFC, superannuation savings of $1.3 trillion helped Australia through the GFC via indirect investment to help Australian companies raise equity and lessen dependence on the overseas debt market.

Q. Do you support or oppose the Federal Government’s plan to increase superannuation payments from nine per cent to 12 per cent by 2019-20?

69% support the Federal Government’s plan to increase superannuation payments from nine per cent to 12 per cent by 2019-20 and 13% oppose – no change since this question was asked in May last year. However, the strength of support has increased with 29% strongly supporting the measure (up 8%).

Support is higher for those aged 35-54 (76%), full-time workers (76%) and those earning over $1,600pw (77%).

Comments »