Mary Delahunty, ASFA's chief executive, emphasized the importance of taking proactive steps with superannuation savings. “Spending just one hour analyzing your savings can profoundly impact your future lifestyle in retirement,” she remarked.
Delahunty suggested some straightforward strategies, such as reviewing the latest account statements, assessing individual risk tolerance, and considering consultation with financial professionals. “Financial advice is invaluable,” she added, highlighting the need for expert input.
ASFA advocates for the advantages of obtaining “quality, affordable advice” directly through superannuation funds. Many of these funds offer general or limited financial advice at little to no cost. Members can access tools that assist with retirement planning, including calculators for forecasting savings and investment outcomes.
However, if members require comprehensive personal financial advice, they should be prepared to pay an additional fee. This tiered approach allows individuals to seek out professional guidance tailored to their specific circumstances.
In response to the government’s announcement regarding the new class of advisers (NCA), ASFA has expressed strong support for regulations that govern who can provide financial advice, ensuring that advisors focus on prudentially regulated products. “Protections for consumers are essential in widening access to financial advice for Australians,” noted Delahunty.
She reiterated how this move signals a government commitment to enhancing the financial well-being of Australians and breaking down barriers to affordable advice. “With these reforms, we can expect better outcomes for consumers,” she stated.
Delahunty encouraged account holders to diligently assess their current financial status. One helpful resource is the ASFA Retirement Standard, which has spent two decades tracking essential costs associated with retirement, such as healthcare, communication, clothing, and household expenses.
ASFA’s advice extends to a set of simple actions for reviewing super accounts, which include:
- Updating personal information relevant to your super account.
- Regularly monitoring account performance.
- Considering strategies to maximize superannuation contributions.
The motivation for these advisor check-ups comes on the heels of favorable investment returns reported by super funds. For the year 2024, ASFA has highlighted a robust trend of double-digit returns across various balanced and growth superannuation investment avenues.
Analysis shows that many funds have delivered average returns of at least 10.5% since the start of the year, with standout performance pushing returns close to 12%. Some high-growth strategies have even achieved annual returns of up to 15%.
Delahunty highlighted that over a longer horizon, the 10-year performance of balanced investment options typically exceeds 7%, surpassing returns from traditional investments like term deposits and significantly outpacing inflation.
“The core purpose of our superannuation system is to consistently deliver robust long-term results, empowering Australians to secure the retirement they deserve,” she concluded. Amid the noise surrounding superannuation, the focus should remain on the reliable delivery of significant returns for future retirees.
Source: ASFA
