Complexity and Uncertainty regarding Superannuation Do Not Explain Key Decisions Taken by Members

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.