The super industry's efforts to resolve the baby boomer bubble has focused too much on asset allocation and product solutions rather than holistic solutions that start with advice and members' cashflow considerations.
Colonial First State senior executives said there had been an over-focus on developing a "silver bullet" to resolve the looming demographic challenge, when real solutions started with accessible and affordable advice.
Peter Chun, Colonial's general manager of product and investments, said retirees gravitated around their bank account and wanted the superannuation industry to provide flexible ways to manage their cashflow in retirement.
"I think industry has thought we'll build this great mousetrap," Chun said.
Cashflow considerations such as the minimum pension amount and the implications of aged care needed to be nutted out, they said.
Linda Elkins Colonial's executive general manager said banks could do more to support Australia's superannuation industry, as demographics changed, through their breadth of services.
"We are in a good position to listen to the voice of the customer," she said.
But legislative changes were needed to promote the development of suitable product solutions, according to Elkins.
Product was the final consideration in providing a retirement solution, Chun said. He said an allocated pension could provide the strong bedrock from which to manage member's cashflows.
It was more flexible and could be integrated with online banking compared to lifetime annuities, which were locked in and capital intensive, he said.
Australia’s second largest super fund has added thermal coal companies to its list of investment exclusions.
The fund has expanded its corporate superannuation solutions to partner with Australian businesses of all sizes.
The chief executive of Aware Super anticipates a significant shift in how ESG factors will influence portfolio values in the next six years, surpassing the changes witnessed in the past two decades.
In a recent statement, shadow assistant minister for home ownership and Liberal senator for NSW, Andrew Bragg, accused ‘big super’ of fabricating data attributed to the Reserve Bank of Australia to push their agenda.
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