Super fund member numbers, balances on the rise
The number of superannuation fund members is predicted to increase by 30 per cent to 4.8 million in the next 15 years, according to Russell Investments director of superannuation Steve Schubert.
Schubert said the key age group to target for advice in the next 15 years will be 50 to 64 year olds, a group that will grow by 50 per cent during this period to 8.8 million people.
“The average superannuation balance for this group will double in the next 15 years to $300,000,” Schubert said at the fund manager’s conference in Melbourne.
But the real question will be how to deliver advice to this group, as there will probably not be enough advisers to meet the demand, he said.
“We will have to make the advice model more effective,” he said.
Schubert said workplace engagement was an efficient way of delivering tiered advice and this will give corporate funds, master trusts and some industry funds a competitive advantage.
Another way of delivering advice will be electronically using modelling as well as data feeds.
“Another option is embedded advice in retirement products,” he said.
“Multi-manager products will include manager selection, portfolio construction and risk management in the one product.”
Schubert also sees future growth in pension products to meet the demand of this growing segment of the retirement market.
“What are these people going to do with their money?” he asked.
“We do need some resource that will help people work out a personal plan to manage this money.”
Recommended for you
Net cash flow on AMP’s platforms saw a substantial jump in the last quarter to $740 million, while its new digital advice offering boosted flows to superannuation and investment.
Insignia Financial has provided an update on the status of its private equity bidders as an initial six-week due diligence period comes to an end.
A judge has detailed how individuals lent as much as $1.1 million each to former financial adviser Anthony Del Vecchio, only learning when they contacted his employer that nothing had ever been invested.
Having rejected the possibility of an IPO, Mason Stevens’ CEO details why the wealth platform went down the PE route and how it intends to accelerate its growth ambitions in financial advice.
