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
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
