In this guide
- Challenge of a complex retirement income system
- Why your financial literacy skills matter
- How financially literate are Australians?
- Retirement savings and financial literacy
- Financial literacy and retirement comfort
- Importance of professional financial advice
- 6 tips for improving your financial literacy skills
Building a retirement income strategy can be complex, but if you don’t understand the basics of finance, the task will seem even more herculean.
That’s why having a solid foundation of financial literacy – both the terms used and the structures underpinning financial products – is so essential.
Unfortunately, it seems financial literacy is one skill many Australians put in the too-hard basket. This leaves many of us feeling anxious and uncomfortable about planning our retirement and managing our finances once we are retired.
Good to know
Financial literacy or capability is a general term used to describe your ability to understand and apply financial skills in your everyday life and is considered to be a fundamental life skill in the modern world.
The OECD International Network on Financial Education defines it as a “combination of awareness, knowledge, skill, attitude and behaviour necessary to make sound financial decisions and ultimately achieve financial wellbeing”.
Good financial literacy helps you master your finances and gives you the confidence to make complex financial decisions – both outside and inside super. These decisions can include:
- Choosing an appropriate investment option for your super
- Whether to make extra super contributions when you can afford it
- Deciding how much insurance to apply for through your super fund
- Choosing how to create an income stream to fund your retirement years
- Selecting the right products and investment options for your personal circumstances in retirement.
Challenge of a complex retirement income system
Planning how you will fund your retirement is always a tricky task.
Yes, you can plan your retirement without a financial adviser
- Step-by-step guides help you plan and take action
- Simple changes can make a big difference to your super balance
- Calculators, case studies and Q&As give you greater confidence
- Make sure your super is performing and lasts longer
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