New research reveals the urgency with which super funds must begin to act to reach their members and the increasingly pressing need for advice regulatory reform, before it’s too late and they retire without receiving the benefits of financial advice.

A national survey of 2000 Australians by the $37 billion profit-to-member super fund Equip Super has found that the generation of super fund members that considers itself least well-prepared for retirement is those who are approaching retirement age.  

The survey shows that Gen X – who today are aged 45 to 60 – are the most underprepared for retirement, with fewer than four in 10 (37 per cent) having a financial plan in place, a lower proportion than survey respondents overall (47 per cent). 

The value of having a plan is underlined by the finding that those who do have one expect to retire three years earlier than those who don’t have one, and that they shoot for a higher retirement balance than those who don’t have a plan, at $2.1 million versus $1.6 million. 

Equip notes that the lower incidence of having a financial plan is occurring in an age group that is “in the window when decisions about savings, investments and timelines become more pressing”. 

Good intentions aren’t necessarily translating into action for this group, either. Around four in 10 (41 per cent) Gen Xers intend to make a plan. And having no intention is also quite prevalent, with more than one in five (22 per cent) saying they do not plan to plan. 

It’s getting close to too late for some members in this age group to reap the full benefits of advice before they retire. The ability to tweak strategies, including transition to retirement (TTR) strategies, has the potential to significantly boost retirement savings, and making the right choices about retirement income options can be crucial to ensuring income is both maximised in retirement, and lasts long enough. 

Equip Super chief experience officer Carrie Norman tells Retirement Magazine that a lack of planning by Gen Xers “is not driven by apathy”.

“Many people intend to act but delay because retirement planning feels complex, 

overwhelming, or difficult to know where to start,” she says. 

The key to overcoming this is “reducing complexity, building confidence, and making support easier to access, so members can take practical, manageable steps earlier, when it can have the greatest impact on their retirement outcomes”. 

Engage proactively

Norman says it’s critical to engage members proactively, and to design communications that “build understanding of superannuation and the role it plays in long-term financial security”, which includes targeting those among the fund’s 135,000 members who may benefit from specific actions such as reviewing insurance, increasing contributions, or seeking advice.

“We also run targeted ‘nurture’ campaigns that follow a next-best-action approach, ensuring members receive information that is timely, relevant, and actionable rather than generic reminders.” 

Norman says that Equip runs a “structured milestone” program that starts when a member is 50 and goes until they turn 74 that delivers tailored guidance at critical moments in their lives. 

A nine-topic webinar series has been developed as part of an education program, and support is provided to employers to hold workplace education sessions through tailored seminars. 

“Our website provides practical information, tools and tips to help members engage with their super across their working lives and into retirement,” Norman says. 

For many members information needs to be supplemented by “multiple layers of personalised assistance”, which for Equip members includes a specialised retirement centre and teams that provide intra-fund and comprehensive advice.

Norman says the retirement centre is open to all Equip members, regardless of age, and “following strong uptake and positive feedback, members of any age can now book an appointment with a superannuation specialist, at no extra cost, to discuss their options and receive general advice”. 

Norman says the Equip research highlights an opportunity for super funds. While many Australians, particularly those in their 40s and 50s, know they should be planning for retirement, they struggle to take the first step.  

The message for funds is that these members will respond to “advice that feels accessible, timely and relevant to where they are right now, rather than something they put off until retirement is imminent”.