Australians Recognise Superannuation's Value but Face Preparedness Challenges: Data

A majority of Australians acknowledge the significance of superannuation in achieving financial independence. Still, one-third of the population feels ill-prepared to navigate unforeseen financial challenges, according to the latest Financial Freedom Seekers study conducted by MLC.

While 69% of Australians actively consider having enough money for retirement, and 70% possess a good understanding of how superannuation can aid them in achieving their financial goals, the research reveals that 29% feel somewhat prepared, and 11% do not feel prepared at all to handle unexpected financial hurdles.

Approximately 79% of Australians have a rough estimate of their current superannuation fund balances. Notably, more than one in ten people aged 18-42, and about one in five aged 43-57 and 58-76, are making additional personal contributions to their superannuation funds, the data shows.

Mark Oliver, Head of Superannuation at MLC, commented that while Australians grasp the value of superannuation and aspire to improve their financial situations, they require additional support to achieve financial freedom. He emphasised the need for members to gain confidence in their superannuation and overall financial well-being well before retirement age.

Regarding the Quality of Advice Review (QAR) proposal, which aims to empower super funds to offer more advice, Oliver expressed support for it, believing that expanding personal advice offerings could be a valuable tool for members in planning their financial futures. Oliver stated, "Financial advice needs to be accessible, timely, and adaptable."