A new report has found that those superannuation funds which focus on marketing their advice services also experience a boost in client engagement.
The CoreData 2014 Post-retirement Report found financial planning and financial counselling are the most valued super fund services by both pre- and post-retiree members, regardless of whether their super fund offered them or not.
However, only 13 per cent of those currently using a financial planner use one inside their super fund as a primary source of advice.
Industry funds in particular have low levels of advice take-up, with only two in five members using their financial planning services.
This, according to CoreData head of super & SMSFs Salvador Saiz, reinforces the need for industry funds to better engage their members to take up advice.
“There still remain a large number of funds for which advice is not a key service or which is not deemed beneficial for their membership,” Saiz said.
“On the other hand there are a number of funds that have realised the value of advice as a key retention and engagement tool and have focused their efforts on building their internal advice capabilities even further,” he added.
“It’s no surprise that these funds have seen a direct link between these efforts (the marketing/communication of advice services) and increased member retention and engagement.”
The research report also found low levels of additional contributions in the last 12 months have endangered retirement goals for many Australians, identifying the need for education about retirement products.
The research house has offered a silver lining after super fund returns saw the end of a five-month streak last month.
A survey of almost 6,000 fund members has identified weakening retirement confidence, particularly among those under 55 years of age, signalling an opportunity for super funds to better engage with members on their retirement journey.
The funds have confirmed the signing of a successor fund transfer deed, moving closer to creating a new $29 billion entity.
A number of measures, including super on Paid Parental Leave, funding to recover unpaid super, and frameworks to encourage investment in the energy transition, have been welcomed by the superannuation industry.
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