TITLE:
Complexity and Uncertainty regarding Superannuation Do Not Explain Key Decisions Taken by Members
AUTHORS:
Necmi K. Avkiran, Elizabeth Zhu
KEYWORDS:
Superannuation, Key Decisions, Complexity, Uncertainty, Members
JOURNAL NAME:
Theoretical Economics Letters,
Vol.8 No.11,
August
2,
2018
ABSTRACT: Superannuation in Australia represents the largest
investment in the country in the managed funds industry. Yet, people without
appropriate qualifications are required to make financial decisions for their
future under government legislation. We capture complexity and uncertainty as a
way of explaining key decisions, using
partial least squares structural equation modelling (PLS-SEM). Complexity
explains key decisions more than uncertainty. Based on the answers given to
open-ended questions, members are at a loss to make key decisions for their
future, partly due to the non-transparency of superannuation and changing government rules.