Determinants of seeking advice within defined contribution retirement savings schemes

Abstract

We report results from a study of superannuation member advice-seeking within their plan, explaining observed patterns by member age, gender, issue salience, and size-of-bet effect. Inquiry mode, frequency and volume of contact with the advice-provider, and sensitivity of members to legislative change and macroeconomic events are considered. Results show that gender (female more likely than male), age (older rather than younger), balance (larger rather than smaller) and experience (longer rather than shorter), are the strongest advice-seeking predictors, consistent over time. Findings suggest member engagement around retirement planning may be more effective when considering the factors affecting advice-seeking behaviour in general.

Consumers of Financial Advice in New Zealand

“…Investment and retirement planning services were also cited as the top services the financial adviser provided (84% and 64%, respectively). This is consistent with findings in Australia, where households age 55-59 demand retirement planning services above other financial planning areas (Clark, Fiaschetti, and Tufano, 2016). However, QFE advisers in New Zealand can only provide retirement and investment-oriented advice to do with their own products-which poses a fiduciary versus suitability issue, similar to that in the U.S.…”

The determinants of recovery from the Black Saturday bushfire: demographic factors, behavioural characteristics and financial literacy

“…majority comes from known sources relating to superannuation. These sources include mandatory disclosure rules and other academic sources that cover financial regulation as well as a broad raft of factors such as advisory services, risk, contributions, personal savings, information sources and market sources, amongst others (instance.g., Lusardi and Mitchell, 2007b;van Rooij et al, 2011;Clark et al, 2019).…”

Choosing the highest annuity payout: the role of intermediation and firm reputation

“…In the accumulation phase, Clark et al (2019) and Fiaschetti and Gerrans (2019) find that being older and female and having a larger pension balance are significant predictors of advice seeking. For this reason, we extend the use of these controls for the intermediation model.…”