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MySuper should include simple advice: Mercer
Scaled advice should be part of MySuper and the costs bundled along with overall superannuation costs, according to Mercer.
The latest Mercer Superannuation Sentiment Index revealed that when looking for advice, most of the 1,078 working Australians surveyed considered approaching their superannuation fund (40 per cent), their financial adviser (42 per cent) or their fund website (24 per cent).
It also found that 43 per cent of those who had sought financial advice felt confident they had enough retirement savings, compared to 30 per cent of those without an adviser saying the same.
Those who sought financial advice were also generally more positive towards their main superannuation fund, and 82 per cent of those were also confident in their knowledge about superannuation.
“The more people are engaged with their superannuation fund, the more secure they are with its performance, regardless of external factors,” said Mercer financial advice leader Jo-Anne Bloch. “They will take a longer-term view of superannuation which is the right way to look at it. Advice is the crucial link.”
However, Bloch noted that in the context of MySuper, a high-cost, fully-fledged advice service was not needed to get members engaged. She added that members also do not want to pay more for simple advice in relation to their current superannuation account or pay for advice separately.
“Where the costs of simple superannuation advice are built-in to the cost of superannuation, more members access this advice,” said Bloch.
AUTHOR
Caroline Munro
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The future of superannuation policy remains uncertain, with further reforms potentially on the horizon as the Albanese government seeks to curb the use of superannuation as a bequest vehicle.
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.
APRA’s latest data has revealed that superannuation funds spent $1.3 billion on advice fees, with the vast majority sent to external financial advisers.
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