One third of Australians approaching retirement have never received any advice reveals Smart

One third of Australians approaching retirement have never received any advice reveals Smart

LONDON, Dec. 8, 2020 /PRNewswire/ -- YouGov research: One third of respondents - and one quarter of those over 55 - said that they did not understand the retirement finance options available to them well

  • Financial advisors (53%), Superannuation funds (50%) or government websites (41%) are the places most people would expect to get advice
  • However, these sources do not appear to live up to expectations. When asked where they had received the most useful advice, 29% of 55+ respondents said financial advisors and only 16% mentioned their superannuation fund
  • Smart Retire guides users through retirement, giving them the confidence to make informed decisions through a simple pot solution

New research commissioned by global retirement technology provider, Smart, carried out by YouGov, has found that an astounding 34% of Australians aged 55+ (38% aged 45-55) have never received any advice on retirement.  The research also found that two thirds (66%) of respondents consider online tools important when planning for their retirement, with 30% feeling that following the covid pandemic, managing retirement finances online was more important than before.

The news comes as Smart, which now manages almost AUS $2.7bn of assets, launches Smart Retire (, an innovative product that gives people flexibility to plan and manage retirement savings in a personalised way. Flexibility in retirement is increasingly important as one third of savers expect to continue to work part time during retirement and will need the opportunity to flex their income as necessary.

Will Wynne, Group Managing Director, Smart, said:

"Retirement is complex and we know people need help if they are to make the most of their savings. That's why we've invested tens of thousands of hours conducting research, testing and developing our new Smart Retire technology solution which gives people flexibility and control, while guiding them through important decisions to ensure they are using their money in the right way. Importantly our approach, which helps people navigate their retirement options, bridges the advice gap while empowering people to make the most of their retirement savings."

Smart Retire

Smart Retire guides members through the complexities in the run up to retirement, filling the so-called 'advice gap' through guidance rather than often expensive advice. Members can use this solution in conjunction with personalised advice from a professional. 

Designed by Smart's in-house research and UX team, Smart Retire has been built to be as flexible as possible, allowing users to scenario plan and change their retirement strategy as required.

Built with a 'four pots' model, based on user research, Smart Retire accommodates life's unpredictability and ensures users avoid both under-spending and running out of money in their retirement.

Of the four pots, two are income pots:

  • Flexible income pot - monthly income in the early years of retirement
  • Later life pot - leave money invested to buy a guaranteed income from an annuity provider later on in retirement

And two savings pots:

  • Rainy day pot - dip in to this pot for emergencies
  • Inheritance pot - put money aside to leave to a loved one

Interestingly, Smart's user research shows that the inheritance pot isn't required by Australian  retirees, with property being the preferred method of transferring wealth - this has been further supported by the findings from the Retirement Income Review.

The output of Smart's research will initially see the solution configured to three 'buckets' for the Australian market (Flexible income, Later years and Buffer), and will also incorporate the Age Pension, providing members with a single view of their retirement and giving them confidence to plan and spend effectively.

Through the development of the roadmap, there will be a greater focus on non-super assets such as housing wealth, to ensure that Australian's are equipped with the ability to maximise their retirement income.

Mark Vaughan, Managing Director of financial services consulting firm, QMV, said:

"QMV is excited to see innovation and international perspectives enter the market, providing opportunities for helping members to gain cost effective access to self-service retirement planning tools. This is particularly relevant given the recent release of the Retirement Incomes Review report and continued focus on superannuation policy settings."

Smart Retire will initially be available to members of the Smart Pension Master Trust in the UK with it being rolled out globally in 2021.

Recognising that consumers have long enjoyed technology advancements in banking, payments and investments, Smart's global mission is to transform pensions savings and financial well-being across all generations around the world through technology, and bring the pensions sector into the 21st century.

Notes to editor:

Smart's research, carried out among 6,000 people across the UK, USA, and Australia, shows millions of people coming up to retirement across the globe are crying out for technology to solve these problems.

About Smart:

Smart is a global savings and investments technology platform provider, co-founded in 2014 by Andrew Evans, Group CEO, and Will Wynne, Group MD. Link Group, Legal & General Investment Management (LGIM), J.P. Morgan, Natixis Investment Managers and Barclays are all strategic investors in Smart.

The Smart platform powers the award-winning master trust, Smart Pension Master Trust. Launched in 2015, the Smart Pension Master Trust has grown from £100 million in AUM to £1.5 billion in two years. It is overseen by independent professional trustees and regulated by The Pensions Regulator. Smart Pension is a signatory of the UN Principles of Responsible Investing (PRI).

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