Holistic retirement planning pilot highlights opportunity to boost financial literacy, advice adoption and confidence in Australians

Joanne Earl

Following the successful completion of a holistic retirement planning pilot study in August 2021, Macquarie University, in collaboration with Allianz Retire+, calls for financial advisers to join the Australian Research Council linkage project, as it’s cleared for a national roll out.

The landmark project will commence nationwide in March 2022 and combines expertise  from Macquarie University and Allianz Retire+ with academic affiliates from UNSW and the University of Western Australia. The longitudinal study will examine how a range of inputs to pre-retirement planning – spanning career, health and financial guidance – may impact retirement outcomes for everyday Australians.

Preliminary results from the South Australian pilot study, undertaken in late 2021, provide promising results in how post-work planning has benefits for retirement preparation:

• after completing the intensive three-module course – a mix of online and one-to-one advice activities – participants on average revised their expected retirement ages and reported higher confidence in achieving the intended target date
• higher confidence about retirement overall
• boosted financial literacy knowledge
• increased likelihood of consulting a financial adviser.

While seeking to build more detailed evidence on holistic retirement advice, the study also aims to deliver innovative retirement planning training for financial advisers.

In exchange for a significant number of CPD points, the project team now seeks expressions of interest from registered financial advisers with experience in dealing with retirement planning-related issues to provide general financial advice sessions.

Project lead and Macquarie University Professor Joanne Earl, a noted expert on the psychology of ageing and retirement, said: “Our Adviser partners are critical to this project as their feedback will help us translate the theory of the program into a workable advice solution. They’ll have the opportunity to be at the forefront of something really progressive”.

“Having enjoyed the process, a number of our advisers in the pilot seem to have got a lot out of the experience and wish to carry over into our main study, and we are incredibly grateful for their continued support” she said.

In addition to CPD points, planners will also gain training and insight into the broader multi-disciplinary approach that supports the holistic advice process.

Simon Aboud, Allianz Retire+ Chief Product and Marketing Officer, said the pilot displayed promise for the main study, at a time when advice adoption levels in the pre-retirement segment remain worryingly low:

“We know from recent Allianz Retire+ data that only 1 in 6 people approaching retirement are engaging with any financial advice. We view the general uptick in willingness to seek advice following the pilot as a highly beneficial outcome for the participants” commented Aboud.

“This study is revolutionary in its potential and the model, if proven effective, could positively impact people’s choices and retirement confidence for generations to come”.

Financial advisers wanting to take part in the upcoming Macquarie University/Allianz Retire+ study can contact: [email protected]