Establishing a trusted and reliable superannuation provider is of the upmost importance for Australians – given the rising cost of living. However, with many different providers in the market today, most Australians need an element of assistance in making the right decisions for themselves and their families.
This fact is reinforced by the results of a recent Roy Morgan Research poll. Collected over five years with the thoughts of 250,000 Australians, the ‘Superannuation and Wealth Management in Australia’ report offers much insight into the world of superannuation.
According to the results, 72 per cent of Australians who changed superannuation provider in the 12-month period to December 2014 reached out for assistance. However, where they found this information varied.
A total of 35.4 per cent sought advice from a financial planner or accountant, 18.7 per cent from their employer, 12.2 per cent from family and friends and 9.3 per cent directly from a financial institution.
Roy Morgan Research’s Industry Communications Director, Norman Morris, explained that it was positive that so many Australians are looking for superannuation assistance when switching providers. However, he was still concerned with the 28 per cent who don’t get any advice at all.
“With only around a third of those who switch their superannuation getting professional advice, combined with the considerable lack of engagement and understanding by many in superannuation, it is of some concern that they may miss out on appropriate advice for their particular needs,” he said.
“The recent Financial System Inquiry recognised this issue [saying that] ‘in the absence of quality financial advice, consumers may make inappropriate investment decisions, or fail to make appropriate financial planning decisions.'”
Superannuation assets set to rise
Superannuation will be an important consideration for the next generation of Australian contractors. According to Deloitte, retiring on $1 million won’t be enough for Generation Y – highlighting the need to find accurate advice for your situation.
By 2033, total superannuation assets will reach a massive $7.6 trillion in Australia, confirming the significance of this system to the country’s future. So, what are the options for IT contractors?
Oncore Wealth Solutions understands the current landscape of the superannuation system and can assist contractors when working out the best super fund for their individual situation. This can include information on tax advantages, government top-ups and consolidating super funds.
There is no doubt that superannuation can be a minefield, but by working with Oncore Services, IT contractors can be confident that when retirement arrives, the nest egg will support your future.