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Super funds need to use a time dialogue
Superannuation funds should embrace the opportunity to use time and longevity awareness to improve dialogue with members, My Longevity believes.
The longevity information provider’s founder, David Williams pointed to Super Review’s Future of Superannuation conference delegate poll that found 50 per cent of the challenges facing superannuation funds were from communication with members.
Williams said through introduction of a “time dialogue” super fund members could benefit from more education about the drivers of changing longevity in the community and how it might play out for individuals.
“We become more different from each other as we age, not more alike. The good news is that we can show people how to understand that difference and better plan their future. Plans need a time frame. Funds can show members the many positives about ageing they can access, with better understanding and support,” Williams said.
“Community and personal ignorance about longevity casts doubt on the validity of market research about the concerns of older people. Ignorance leads to fear which can drive responses such as a focus on money as ‘the’ solution to problems.”
He said by improving longevity awareness, super funds could also make a significant contribution to achieving a holistic community response to the challenges of increasing longevity, rather than the current piecemeal efforts.
“A dialogue based on time acknowledges the fear of mortality and also opens the door to many other issues older people are struggling to reconcile with their financial situation,” Williams said.
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Superannuation funds will have two options for charging fees for the advice provided by the new class of adviser.
The proposed reforms have been described as a key step towards delivering better products and retirement experiences for members, with many noting financial advice remains the “urgent missing piece” of the puzzle.
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