Revealing Member Income Preferences

The study uncovers that retirement income certainty preferences are highly individualised and uncorrelated to readily available member data, such as age and super balance. Super providers must measure these preferences to be in a position to provide fit-for-purpose retirement assistance to their members.

Research Methods

We surveyed 4,000 Australian super fund members' retirement income preferences using revealed preference methods via a simple interactive digital experience that simulates the key tradeoffs in retirement income.

We then augmented this preference data with survey questions to capture a holistic financial picture for each respondent, and their attitudes, knowledge and behaviours about retirement.

Key Learnings

• 4 in 5 Australian pre-retirees don't feel prepared for retirement, and their preferences for income certainty are uncorrelated to their salary, super balance, or demographics.

• Australian retirees want an additional $145 billion of guaranteed lifetime income products to meet their preferences for long-term income certainty.

• Measuring and incorporating income certainty preferences will help millions of Australian certainty seekers live a more confident and worry-free retirement.

Bridging the retirement preparedness gap

In our view, seizing this opportunity demands modern diagnostics and member engagement tools that help super funds fulfill the Retirement Income Covenant.

We’re working with like-minded financial services firms to seize the opportunity, and welcome you to join the effort.