Getting the best advice through super

In Australia there are currently almost 15 million superannuation accounts contributing over $750b of assets to 81 industry and public sector funds1. The fact this is only a proportion of the total market highlights the extensive reach of funds to provide quality financial education and advice to Australians.

Financial advice as an engagement tool

The mandatory nature of super provides scale for funds to offer in-house advice services to their members. Ranging from retirement planning and transition to retirement strategies, to decisions about contribution levels, investment choice and insurance cover, a full service financial advice offering is a proven member engagement and retention tool.

However there have also been recent challenges in the advice space. The independence of advice provided via aligned distribution channels has been challenged, leading in part to reviews such as the Murray Financial System Inquiry and the Future of Financial Advice reforms which question the adequacy of current disclosure levels and financial literacy to protect clients. The recommendations of these reviews may see further assessment of incentives received for the sale of vertically integrated products, a move to fee-based financial advice models, as well as compulsory education and training standards.

TAL is a strong advocate for the value of advice

TAL is supportive of these industry initiatives. We’ve always advocated the importance of quality advice, as seen through our ongoing partnerships with independent and aligned financial advisers alike.

Many funds now also have established call centres, staffed with salaried advisers, or entered into arrangements with adviser groups to provide scaled or intra-fund advice, right through to full financial plans.

Options to top up default cover and purchase retail insurance products (like TAL’s Accelerated Protection) provide complementary risk solutions to your fund’s default offerings. There’s also an opportunity to introduce our full advice model through Affinia, which can bridge the gap for funds who only wish to provide intra-fund or scaled advice.

How can we help you?

• Tailored and targeted training for your advisers to suit all levels of competency
• Marketing campaigns to promote the value of financial advice and risk protection
• Strategies to leverage opportunities available to your members through our multiple distribution channels.

If you’re interested in learning more about how TAL can assist your fund with financial advice services or solutions, start a conversation with your client manager today.

¹ Association of Superannuation Funds of Australia (ASFA), 2015, Superannuation Statistics December 2015