POWERED BY MOMENTUM MEDIA
Imagining future could help super engagement
The secret to engaging consumers in their superannuation could lie in helping them better imagine the future selves their retirement savings would be supporting, but funds will first need to better understand their members, according to Milliman.
The firm said that attempts to persuade members to save more super by used broad-based, one-size-fits-all targets had failed and a new approach was needed.
“Research suggests another path,” Milliman said. “When members are able to see their future selves in vivid and realistic detail, they are more willing to make choices today that may benefit them in years to come.”
It believed that this could help mitigate the effects of hyperbolic or temporal discounting, which makes people care less about future outcomes that present ones.
According to academic Hal Hershfield, “when the future self shares similarities with the present self, when it is viewed in vivid and realistic terms, and when it is seen in a positive light, people are more willing to make choices today that may benefit them at some point in the years to come.”
Milliman warned that to connect members’ present selves with their future ones would require super funds to understand them “far deeper”. It suggested the use of data analytics could help do so.
Recommended for you
Superannuation funds have posted another year of strong returns, but this time, the gains weren’t powered solely by Silicon Valley.
Australia’s $4.1 trillion superannuation system is doing more than funding retirements – it’s quietly fuelling the nation’s productivity, lifting GDP, and adding thousands to workers’ pay packets, according to new analysis from the Association of Superannuation Funds of Australia (ASFA).
Large superannuation accounts may need to find funds outside their accounts or take the extreme step of selling non-liquid assets under the proposed $3 million super tax legislation, according to new analysis from ANU.
Economists have been left scrambling to recalibrate after the Reserve Bank wrong-footed markets on Tuesday, holding the cash rate steady despite widespread expectations of a cut.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom 465 Calder Road Calder
99.46 3 y p.a(%)
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
78.55 3 y p.a(%)
4
BetaShares Crypto Innovators ETF
50.39 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
47.50 3 y p.a(%)
