Retirement
Super members need advice but won’t pay for it
Consumers don’t want to pay for superannuation advice, despite there being a need for super fund members to be able to access a comprehensive financial plan, a report has outlined.
Super members need advice but won’t pay for it
Consumers don’t want to pay for superannuation advice, despite there being a need for super fund members to be able to access a comprehensive financial plan, a report has outlined.
New Rice Warner projections have shown that one in seven employed people is likely to require regulated financial advice each financial year.
However, the exposure of unlawful practices in the financial services royal commission and the paying out of remedial fees has led to a much smaller advice industry.
To address the problem, Rice Warner said that superannuation funds could develop intra-fund advice models for members.
“These are simple single-issue pieces of advice which are given free to members or provided at a nominal cost,” the report stated.
“As more members approach retirement, where the circumstances are far more complex, the demand for personal advice will grow,” it indicated.
“Yet, no fund has yet been able to marry the needs of members approaching retirement cost-effectively.”
The research found that lower supply since the royal commission will mean a higher demand for the financial sector in the coming years.
Rice Warner has forecast technology as being “one avenue for satiating the tidal wave of incoming demand”, although the report conceded that the digital advice take-up is slow.
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