High numbers of retirees want support when seeking the age pension and would like that to be offered by their superannuation fund, according to a white paper released by a super and retirement solutions provider.
The paper, “Retirement Reality: Advice and the Age Pension”, released by Link Advice, found 79 per cent of future age retirees want support as soon as they are eligible for the pension and 72 per cent would take support regarding the pension and retirement savings if it was offered directly by their superannuation fund.
“In our survey, almost half (48 per cent) of future age pensioners found the application process difficult or extremely difficult. In contrast, over half of existing age pensioners surveyed sought help during the process, while those who did not seek help reflected that they would have liked help (61 per cent) through the process, but did not know where to turn,” the paper stated.
“While other channels and organisations exist to provide age pension and retirement support, the majority of all age pensioners desire direct support from their funds.”
Link Advice general manager Duncan McPherson said: “The combination of the challenges navigating the process and delaying the application for the age pension can create a real cost to retirees’ outcomes and entitlements, potentially decreasing their quality of life going into retirement.
“What is positive is that seven out of 10 retirees want their super fund to provide more retirement and age pension support. The trust is there and the opportunity to help is huge.”
The paper noted its findings aligned with the Retirement Income Covenant obligations for superannuation fund trustees to provide and execute a cohesive retirement strategy that supports members through decumulation.
Retirement Essentials director Jeremy Duffield added: “With a long retirement horizon ahead and no back pay on the age pension, retirees just can’t afford to miss out on any benefits. That’s why we think it’s so important for super funds to offer help and education about the age pension while keeping member needs front of mind.”
The paper, produced by Retirement Essentials and commissioned by Link Advice, surveyed the retirement support needs of almost 1000 everyday Australians aged 65 to 75 who have either applied for the age pension or are approaching eligibility.
