Right asset allocation at the right time is critical, says Jodie Hampshire
As the Covid-19 economic downturn forces many young people to dip into their super funds years ahead of their retirement, a new study has revealed that Australians are largely ignorant about the asset class that is absolutely crucial in having a successful post-work life.
The study commissioned by global fund manager Russell Investments included a poll of 3,000 working Australians.
Super is a way people accumulate money for retirement. It is compulsory for employers to make superannuation contributions for their employees on top of the employees’ salaries.
But what the study found was widespread ignorance and misconceptions among Autralians about super funds and the way retirement assets are managed.
According to the research, two-thirds of Australians mistakenly believe that super funds pro-actively protect their savings from potential losses. In fact, more than a third think that super is managed based on their personal circumstances.
A whopping 67 per cent of respondents said they were not aware how their super was invested, while some just preferred to leave it to their funds’ default investment option. And an equal number believed their fund would actively or automatically rebalance portfolios to protect members from an economic downturn.
Surprisingly, more than one in five respondents (21 per cent) did not know that they had a say in their own investments in super.
On the other hand, some 28 per cent admitted in the survey they had picked their own investments in super, despite not having adequate knowledge about the same. Ironically, one in four admitted to having relied on friends or relatives for the same.
According to the study, only 21 per cent of those who have set goals know how to achieve them.
That’s what concerns Russell Investments Australian MD Jodie Hampshire. “For working Australians, asset allocation is one of the strongest factors driving retirement income adequacy. Having the right asset allocation at the right time is critical,” she says.
Follow The Indian Sun on Twitter and Facebook
Support Independent Community Journalism
Dear Reader,The Indian Sun exists for one reason: to tell stories that might otherwise go unheard.
We report on local councils, state politics, small businesses and cultural festivals. We focus on the Indian diaspora and the wider multicultural community with care, balance and accountability. We publish in print and online, send regular newsletters and produce video content. We also run media training programs to help community organisations share their own stories.
We operate independently.
Community journalism does not have the backing of large media corporations. Advertising revenue fluctuates. Platform algorithms change. Costs continue to rise. Yet the need for credible, grounded reporting in a multicultural Australia has never been greater.
When you support The Indian Sun, you support:
• Independent reporting on issues affecting migrant communities
• Coverage of local and state decisions that shape daily life
• A platform for small businesses and community groups
• Media training that builds skills within the community
• Journalism accountable to readers
We cannot cover everything, but we work to cover what matters.
If you value thoughtful reporting that reflects Australia’s diversity, we invite you to contribute. Every donation helps us maintain the quality and consistency of our work.
Please consider making a contribution today.
Thank you for your support.
The Indian Sun Team
