Super funds integral to pension advice – Link

Almost four in five retirees want superannuation funds to provide them with more support and guidance around accessing the Age Pension, according to new research undertaken by Link Advice.

A white paper published by Link Advice suggests that people want superannuation to fill what amounts to a pension knowledge gap.

The white paper suggests that there exists “a clear opportunity to intertwine retirement guidance with Age Pension support.

The key findings of the white paper are that:

• 30% of respondents who have the Age Pension reported low confidence when applying for the Age Pension
• 1 in 3 respondents who have the Age Pension delayed their application by over one year
• 70% of all those surveyed want more Age Pension and retirement support from their super fund
• #1 channel for Age Pension support: Phone & Online tools

Commenting on the white paper, Link Advice general manager, Duncan McPherson said the combination challenges entailed in navigating the process and delaying the application for the Age Pension could create a real cost to retirees’ outcomes and entitlements, potentially decreasing their quality of life going into retirement.

“What is positive is that 7 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,” he said.

The white paper research was carried out in partnership with Retirement Essentials and  explored the retirement support needs of almost 1,000 everyday Australians aged 65 to 75, who had either applied for the Age Pension or are approaching eligibility.

Commenting on the findings, Retirement Essentials director, Jeremy Duffield, Director said that with a long retirement horizon ahead and no backpay on the Age Pension, retirees just couldn’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,” he said.

“These findings align with the Government’s Retirement Income Covenant (RIC) extending trustee obligations to provide and execute on a cohesive retirement strategy that better supports members through decumulation.”

“The introduction of these retirement strategies elevates the opportunity for funds to create improved support experiences that build greater confidence into retirement. Link Advice believes the Age Pension can be a great starting point and an improvement on existing services, specifically around guidance and advice.”