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.
