Younger Australians are increasingly seeking guidance from social media about retirement, despite it being one of the least trusted sources of information, new research from the Association of Superannuation Funds of Australia (ASFA) has shown.
The ASFA study found those aged between 18 and 24 were 10 times more likely to have used social media for retirement information compared to people aged over 65. That is despite all age cohorts having negative net trust in social media as an information source.
The analysis of 1500 Australians adults also discovered only half had consulted any source of information about retirement. Older Australians, that is, those aged over 50, were more likely to have consulted advisers from their super fund or professional services.
“Australians know which sources of retirement information they can rely on. The problem is that the sources they trust most are often the hardest for them to reach,” ASFA chief executive Mary Delahunty noted.
Delahunty pointed out issues such as cost and the limitations on the scope of advice that can be provided by superannuation fund advisers mean those in most need of financial advice often cannot access it.
The survey also highlighted how the cost of not receiving financial advice varies for different age cohorts, with younger Australians most likely to benefit from good advice.
To this end, it found a 30-year-old on an average wage could be $40,000 better off at retirement from just an extra quarter of a percentage point in annual returns. A 50-year-old, on the other hand, would only be $7000 better off from the extra annual returns.
“With 40 per cent fewer financial advisers than 10 years ago and more Australians in the super system than ever, the case for progressing legislation to let funds provide more advice has never been stronger,” Delahunty suggested.
ASFA is using the research to call for prioritising Tranche 2 of the Delivering Better Financial Outcomes package, reforms which are designed to widen access to advice through superannuation funds.
