Advice most valued, but not used
Despite financial planning being the most valued service offered by superannuation funds, only a small percentage of members use their super fund as primary source of advice.
This is according to CoreData's 2014 Post-retirement Report, which found financial advice and financial counselling were the most valued super fund services by both pre- and post-retiree members, regardless of whether their fund offered them or not.
However, only 13 per cent of those currently using a financial adviser use one inside their super fund as a primary source of advice.
According to CoreData's head of super & SMSFs, Salvador Saiz, industry funds have particularly low levels of penetration of advice, with only two in five members actually using their fund's advice services.
This, he said, reinforced the need for industry funds to better engage their members to take up advice.
"There still remain a large number of funds for which advice is not a key service or which is not deemed beneficial for their membership," Saiz said.
"On the other hand there are a number of funds that have realised the value of advice as a key retention and engagement tool and have focused their efforts on building their internal advice capabilities even further," he added.
"It's no surprise that these funds have seen a direct link between these efforts (the marketing/communication of advice services) and increased member retention and engagement."
The research report also found low levels of additional contributions in the last 12 months have endangered retirement goals for many Australians, identifying the need for education about retirement products.
Recommended for you
Advisers at DOD Bookkeeping, which received an $11 million penalty last week, received as much as 40 per cent of their remuneration via a bonus when clients purchased a property via a SMSF, according to court documents.
Private wealth manager Escala Partners has launched an end-to-end investment platform to strengthen its alternatives capability as clients seek sophisticated vehicles.
Perpetual Wealth Management has hired two advisers from Ord Minnett as part of five hires, just weeks after the rival firm announced it had picked up six from Perpetual Private.
ASIC has cancelled the AFSL of a Perth financial services firm following payments to its clients by the Compensation Scheme of Last Resort after a failed managed investment scheme.
