POWERED BY MOMENTUM MEDIA
Super funds recognising need for advice
The importance of providing advice to members is one of the biggest change to superannuation over the last 30 years, according to TelstraSuper.
Speaking to the Australian Institute of Superannuation Trustees (AIST), Steve Cullen, executive general manager for TelstraSuper Financial Planning, said the provision of advice was one of the biggest changes he had seen during his tenure.
“We’ve seen over time that super funds have increasingly recogised the importance of advice for members.
“As people’s education, knowledge and awareness about their super has grown, that’s often been the catalyst for advice.
“Just as equally for me is what’s not changed and that’s the trusted relationship members have with their adviser and the difference that quality financial advice can make for them.”
This was particularly the case as members’ balances had grown from the introduction of the Superannuation Guarantee, necessitating the need for advice.
He said the fund’s members were increasingly looking to their super fund for advice as they had likely been in regular contact with their super fund for many years. This was ahead of approaching their bank or other financial institution.
TelstraSuper, which had $23 billion in funds under management, offered advice about estate planning, retirement income solutions, investments outside of super and an intra-fund advice team was introduced six years.
He continued: “I think possibly there was a time when some super funds wondered whether it was their role to provide advice, but by and large most super funds have recognised the need,” he said.
“It can make an important difference to ensuring that as they transition into retirement, they’re set up to get the best from that superannuation nest egg.”
It was expected super funds would have a greater role in providing advice going forward following the implementation of proposed measures under the Quality of Advice Review.
AUTHOR
Laura Dew
Laura Dew is editor at Super Review. Prior to joining SR, she spent five years working at Investment Week in the UK covering asset and wealth management.
Recommended for you
The two funds have announced the signing of a non-binding MOU to explore a potential merger.
The board must shift its focus from managing inflation to stimulating the economy with the trimmed mean inflation figure edging closer to the 2.5 per cent target, economists have said.
ASIC chair Joe Longo says superannuation trustees must do more to protect members from misconduct and high-risk schemes.
Super fund mergers are rising, but poor planning during successor fund transfers has left members and employers exposed to serious risks.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
88.01 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
72.60 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
44.24 3 y p.a(%)
4
Pengana High Conviction Equities B
40.36 3 y p.a(%)
5
Pengana High Conviction Equities A
40.34 3 y p.a(%)
