Several trends are expected to transform superannuation technology this year, including enhanced personalisation and expanded digital advice platforms.
Following the final Quality of Advice Review reforms delivered by the government in December 2023, super funds welcomed the changes as a “big win” to expand the advice services they can provide to members. Specifically, funds will be able to provide advice to members regarding investment decisions and delivering retirement income.
As a result, the transformation of digital financial advice platforms offered by super funds to members will be a key advancement throughout 2024, according to Paul Giles, chief executive of superannuation at Iress, via intuitive interfaces and personalisations.
“These platforms may further morph into comprehensive hubs that include interactive tools, educational resources, and calculators, encouraging a deeper understanding of retirement planning for better decision making,” Giles explained.
“This year is one of those pivotal times in financial tech history with the progress of superannuation technology showing the commitment of the industry as a whole. Funds are moving towards a digital-first approach for greater scalability and overall efficiencies for employers, advisers, and members alike.”
Last month, Minister for Financial Services Stephen Jones also confirmed that super funds will have a specific permission available to them to prompt or ‘nudge’ members through these platforms. He felt this would allow funds to be proactive and encourage their members to seek advice at important decision points in their life.
Giles pinpointed enhanced personalisation as another trend to continue within the super technology space.
“Superannuation technology is becoming more personalised, offering tailored advice and solutions to individual members. Advanced algorithms and AI-driven tools are expected to analyse data comprehensively and provide personalised retirement planning strategies based on specific member needs, goals, risk profiles, and life stages,” Giles said.
Moreover, funds will remain focused on creating a seamless user experience through mobile accessibility so members can manage their super at their own discretion.
A greater emphasis on financial wellbeing beyond just retirement savings is also expected to enhance digital platforms.
“Superannuation technology is evolving beyond retirement-centricity, embracing a holistic approach and promoting financial wellness. Looking further than retirement planning, these platforms might offer insights into debt management, budgeting, and other financial aspects to support overall financial health for members,” Giles continued.