- Title
- Superannuation in Australia : a mixed methods study into engagement of superannuants
- Creator
- Clinton, Teresa
- Date
- 2023
- Type
- Text; Thesis; PhD
- Identifier
- http://researchonline.federation.edu.au/vital/access/HandleResolver/1959.17/195697
- Identifier
- vital:18560
- Abstract
- Compulsory superannuation is a significant component of the Australian Government’s strategy to encourage citizens to take responsibility for funding their retirement. This project extends current knowledge regarding superannuants financial literacy and their preparedness to engage in the decision process that is embodied in the main communication document received from superannuation funds: the benefit statement. The purpose of this study involved two research questions. The first asked: What are the characteristics and determinants of a benefit statement as a form of financial communication to superannuants? The study aimed to determine if the benefit statement is fit for purpose and involved an examination of industry benefit statements. Institutional Theory was used to explain why benefit statements take their current form. The second research question considers to what extent superannuants understand and engage with the benefit statement? A survey of academics working at Australian public universities was undertaken to explore their financial literacy, understanding and extent of engagement they have with their superannuation via the benefit statement. The OECD/NIFE (2018, p. 4) definition of financial literacy was used for this research study as it incorporates “a combination of awareness, knowledge, skill, attitude and behaviour necessary to make sound financial decisions and ultimately achieve individual financial wellbeing”. The Theory of Planned Behaviour provides an explanation and a greater understanding of attitude and behaviour between demographics for example, age, gender, and education level that contribute to engagement with superannuation. A content analysis was used for research question 1, and found that due to legalisation requirements, a similar format has been adopted by most funds. There was however a lack of information which would allow superannuants the ability to track their preparedness for the amount required to fund retirement. With regard to the second research question, the results from the high socioeconomic group revealed that engagement with superannuation is not reflected by gender or education but rather age approaching retirement. As retirement approaches engagement increases. The attitude of participants towards superannuation was positive with most displaying high levels of self-efficacy however, a pre- and post-survey self-evaluation of financial literacy questions revealed a statistically significant decrease in scores indicating survey respondents were not actually aware of their lack of understanding of superannuation. The combined results from the survey and the content analysis indicate that the quality of disclosure is not sufficient to influence superannuants’ active engagement with their superannuation. This study highlights that engagement with superannuation is driven by personal circumstances and individual differences and the benefit statement needs to be more personally relevant to a broader range of individuals to encourage engagement with retirement planning. The findings help to understand heterogeneity in individuals’ propensity to engage with superannuation and provide an insight into their attitudes and behaviour. The research offers a contribution to the literature on superannuation fund benefit statement disclosure practices and provides an insight for policymakers on the effect these statements they have on superannuants.; Doctor of Philosophy
- Publisher
- Federation University Australia
- Rights
- All metadata describing materials held in, or linked to, the repository is freely available under a CC0 licence
- Rights
- Copyright Teresa Clinton
- Rights
- Open Access
- Subject
- Financial literacy; Financial capability and engagement with superannuation
- Full Text
- Thesis Supervisor
- Halabi, Abdel
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| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details Download | SOURCE2 | Australian digital thesis | 4 MB | Adobe Acrobat PDF | View Details Download |