Calls for new advice model
The chief executive of one of Australia’s largest superannuation funds is calling for a new advice model and believes industry funds are in the best position to deliver it.
Addressing the audience at an Association of Superannuation Funds of Australia luncheon, Sunsuper head Tony Lally claimed that the advice model currently offered by super funds was too expensive and unnecessarily complex.
“At the moment there are too many hands in members’ pockets and it is very difficult to service them,” he said.
“Members don’t want a full financial plan — just a low cost solution to their retirement needs.”
Lally believes a question and answer-based model, which could be delivered through a call centre or via Internet-based video communication, would be the best way to provide this solution.
He said it would be easier for industry funds to work towards this model than it would be for retail funds, which already have extensive distribution networks and payment systems in place.
However, he also added that the current financial planning model wouldn’t exist in the future and that retail funds will need to adapt their offerings.
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