Russell Investments has publicly launched Australia’s first goals-based superannuation solution, using mass personalisation and proprietary algorithms to make it possible for every Australian to access a tailored investment strategy based on their unique circumstances and retirement income goals.The launch comes as Russell Investments released research showing that a personalised approach to asset allocation and voluntary superannuation contributions could substantially reduce the number of investors falling short of their retirement goal.
The study of the retirement goals of more than 8,000 Australians uncovered that a personalised approach could increase the number of investors categorised as on-track to their goal by nearly 70 per cent, with higher projected retirement incomes for more than 85 per cent of those analysed.
Called GoalTracker, the ‘goals-based’ solution aims to tackle what Russell Investments identifies as Australia’s “real retirement savings gap”: the gap between the income that each individual needs to fund the lifestyle they want in their retirement, and what they are on track to achieve.
Russell Investments Managing Director, Australia, Jodie Hampshire, says that while the Australian retirement system is considered amongst the best in the world, policymakers continue to debate how to improve the Australian system.
“Our analysis shows that optimising asset allocations and contributions at the personal level can form a substantial part of the solution,” she says.
