Planner shortfall a factor in poor super decisions

Monday, August 5, 2013

Financial illiteracy and a shortfall of financial advisers are compounding an already tricky retirement savings landscape in Australia, according to new research conducted by University of St. Thomas professor Thadavillil Jithendranathan and Rakesh Gupta, a senior lecturer at Griffith Business School.

Their research paper was published in Accounting Research Journal, noting “There is clear evidence that investors base their decisions primarily on past performance of the funds.”

Gupta joined forces with Jithendranathan to study asset allocation patterns in the managed fund industry in Australia, which claims to be the first study of its kind there. Austrailia's compulsory superannuation (retirement saving) was introduced in 1992 with a view to moving towards self-funded retirement.

Originally published: 08/05/2013, Professional Planner