Consumer Choice in Retirement Savings

Consumer Choice in Retirement Savings

Anna Rue
Anna Rue

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Flare HR commissioned PPG to analyze the potential impact of banning advertising on digital platforms offering superannuation fund choices to employees during job onboarding.

PPG’s analysis concludes that the proposed ban would significantly reduce worker engagement with their retirement savings, leading to higher costs and a smaller nest egg for retirees.

Loss of choice would prevent workers from switching to better-performing funds with higher returns or lower fees and result in workers paying $17 million more annually in duplicate account fees.

Only 33% of employees currently make active decisions regarding who they choose to invest their superannuation savings, while only 42% are aware of government-provided tools for comparing fund returns.

PPG’s report provides policy recommendations – which the Federal Government adopted – to support consumer choice in retirement savings, empowering workers to make informed decisions about their financial future.

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