Advice key to super survival
Advice will be the linchpin upon which superannuation funds will succeed or fail, according to a new white paper published by specialist research consultancy, Milliman.
The Milliman white paper also argued that if industry funds wanted to increase their distribution via the advice channel, it would lead to higher costs that might need to be passed through to members.
The white paper, which examines the evolution of the superannuation industry in the context of the Cooper Review and other Government inquiries, argued that without the ability to engage members no amount of improved products or strategies would help.
It said the breadth of member needs and the focus on individual circumstances would necessitate a customised response to adequately deal with retirement issues and meet a fund’s duty of care to members.
The white paper also argued that looking at the ongoing fee debate between the retail and not-for-profit sectors, the simple fact was that retail funds had substantial distribution capabilities.
“Funds will need to develop their own distribution approaches if they intend competing in this space,” it said. “This will inevitability lead to increased costs, which will need to be balanced against the long-term benefits of member retention.”
Recommended for you
The financial services technology firm has officially launched its digital advice and education solution for superannuation funds and other industry players.
The ETF provider has flagged a number of developments as it formally enters the superannuation space through a major acquisition.
While all MySuper products successfully passed the latest performance test, trustee-directed products encountered difficulties.
Iress has appointed Insignia Financial’s former general manager of master trust and insurance products as its newest CEO of superannuation, who will take over from Paul Giles.