Simple advice could improve member engagement
Low-cost, simple financial advice should be incorporated into MySuper and the costs bundled along with overall superannuation costs, according to Mercer.
The latest Mercer Superannuation Sentiment Index revealed that when looking for advice, most of the 1,078 working Australians surveyed considered approaching their superannuation fund (40 per cent), their financial adviser (42 per cent) or their fund website (24 per cent). It also found that 43 per cent of those who had sought financial advice felt confident they had enough retirement savings, compared to 30 per cent of those without an adviser saying the same. Those who sought financial advice were also generally more positive towards their main superannuation fund, and 82 per cent of those were also confident in their knowledge about superannuation.
“The more people are engaged with their superannuation fund, the more secure they are with its performance, regardless of external factors,” said Mercer financial advice leader Jo-Anne Bloch (pictured). “They will take a longer-term view of superannuation which is the right way to look at it. Advice is the crucial link.”
However, Bloch noted that in the context of MySuper, a high-cost, fully-fledged advice service was not needed to get members engaged. She added that members also do not want to pay more for simple advice in relation to their current superannuation account or pay for advice separately.
“Where the costs of simple superannuation advice are built-in to the cost of superannuation, more members access this advice,” said Bloch.
Recommended for you
As the year draws to a close, a new report has explored the key trends and areas of focus for financial advisers over the last 12 months.
Assured Support explores five tips to help financial advisers embed compliance into the heart of their business, with 2025 set to see further regulatory change.
David Sipina has been sentenced to three years under an intensive correction order for his role in the unlicensed Courtenay House financial services.
As AFSLs endeavour to meet their breach reporting obligations, a legal expert has emphasised why robust documentation will prove fruitful, particularly in the face of potential regulatory investigations.
