Super funds need to change business model, says ASFA

super-funds/association-of-superannuation-funds/research-and-ratings/ASFA/superannuation-funds/superannuation-industry/chief-executive-officer/

5 June 2013
| By Staff |
image
image
expand image

A new report commissioned by the Association of Superannuation Funds of Australia (ASFA) has found super funds will need to adapt their business models to respond to the increasing number of Australians moving into the retirement phase.

The report, prepared by Deloitte Access Economics and presented at the ASFA Investment Conference, stated this meant altering investment strategies to ensure funds have appropriate assets to provide for retirees drawing an income stream.

ASFA chief executive officer Pauline Vamos said that for many years the majority of super accounts have been in the accumulation phase, with super funds tailoring their investment strategies accordingly.

"However, as the population ages and more and more people move into retirement, the focus will need to shift to acquiring assets which deliver the funds necessary to provide for members drawing an income stream," Vamos said.

"We must be careful that we don't look to superannuation as a tool to ‘plug holes' in the financial system, directing superannuation capital towards ventures which may not deliver the best outcomes for fund members."

Vamos added the report highlighted the need for the superannuation industry and the broader Australian community to consider how the Australian super system should evolve to accommodate the changing nature of Australia's population.

"Just as investment strategies will need to change over time to accommodate Australia's demographic changes, so too will the policy settings applied to super," she said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 1 week ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

3 weeks 1 day ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

2 weeks ago

One licensee has lost 27 advisers in the past week, now sitting at zero, according to the latest Wealth Data figures....

3 weeks 1 day ago

TOP PERFORMING FUNDS