As people are more likely to engage with their superannuation fund as they age, trustees could find themselves in a unique position to support members with cognitive decline to navigate a complex system, according to advocacy groups for senior Australians.
Through a podcast titled Cognitive decline and the retirement system: what more can trustees do to assist ageing Australians with achieving positive retirement outcomes?, the Australian Institute of Superannuation Trustees (AIST) addressed potential challenges and strategies with these key groups.
Among some of the ways funds could step up were recognition of symptoms through training, having appropriate systems in place, and hiring the right staff.
“There may be many reasons a person exhibits certain behaviours, not just due to cognitive impairment. Poor memory, for example may be a result of any number of vulnerabilities – be it grief and loss or due to health issues,” said Dr Diane Hosking, senior research officer at National Seniors Australia.
“Recognising [behaviours] and having systems in place to assist those people is step number one.”
Cross-collaborations with the banking sector through age-friendly systems could also assist the elderly.
According to Ian Yates, chief executive of the Council on the Ageing Australia (COTA), there were numerous active measures that could be taken. These included:
- Allocating relationship managers who are familiar with the history of members with cognitive impairment;
- Providing training to be alert to these signs to refer the member to a specialist team with higher level of training;
- Providing resources including Dementia Australia and Dementia Helpline; and
- Efforts to improve financial literacy.
“Strong options, nudges and explanations of the value of products and how to optimise retirement income has not been the culture of superannuation,” he stated.
He added that such “nudging” would not be helpful without existing financial literacy.
Dr Hosking agreed, stating that “nudging [people] towards certain products may make sense for someone with typical financial literacy but may not to someone who may have a range of other priorities or stresses. An example is a fear of health costs”.
Moreover, ensuring diversity of staff, including hiring older workers, could help aging members feel more comfortable.
Yates added: “It’s important to recognise someone who is experiencing challenges with the system may be having digital or systems issues or a language issue, and language issues can grow as people age.
“The level of engagement with someone’s super fund will correlate to the quality of interaction and the quality of the customer service that creates a supportive environment.”
Additionally, the discussion addressed the issue that digital tools might not come naturally to aging members. This would require funds to actively assess their means of communication, including with members with cognitive impairment.
“When people are experiencing cognitive impairment, it may be difficult to absorb and retain new information [over the phone],” she said.
Having systems in place to assist those people who identify as needing support is important, but it needed to be well designed.
