{"id":15093,"date":"2018-03-09T00:00:00","date_gmt":"2018-03-09T00:00:00","guid":{"rendered":"https:\/\/kaizen.ap.applyflow.com\/the-current-and-future-state-of-advice-in-superannuation\/"},"modified":"2022-10-06T06:39:12","modified_gmt":"2022-10-06T06:39:12","slug":"the-current-and-future-state-of-advice-in-superannuation","status":"publish","type":"post","link":"https:\/\/www.kaizenrecruitment.com.au\/the-current-and-future-state-of-advice-in-superannuation\/","title":{"rendered":"The Current And Future State Of Advice In Superannuation"},"content":{"rendered":"<p>Kaizen recently took part in AIST\u2019s Advice in Super Symposium and would like to share a number of important key themes. There was an outstanding cross-section of industry leaders exchanging their experiences, views and predictions around the state of advice in superannuation.<\/p>\n<p>On a whole, the message was that there is a growing demand for advice, yet a foreseeable shortfall in advisors plus enormous investment required to get robo-advice successfully in place, for which demand is yet to be proven.<\/p>\n<h3><img decoding=\"async\" style=\"width: 95%;\" src=\"https:\/\/cdn-01.cms-ap-v2i.applyflow.com\/kaizen\/wp-content\/uploads\/2022\/06\/the-state-of-advice-in-superannuation-kaizen-recruitment-company-LI.png\" alt=\"\" \/><\/h3>\n<p>Key messages across all industry funds<\/p>\n<ul>\n<li>Industry super funds are struggling to engage and communicate to members that help and\/or advice is available for all members.<\/li>\n<li>Once members reach retirement age, they are either withdrawing super balances as a lump sum or transferring their super balances to a retail fund.<\/li>\n<li>Robo-advice is coming:<\/li>\n<\/ul>\n<ol style=\"margin-left: 40px;\">\n<li>Most industry funds are testing robo-advice.<\/li>\n<li>It will take time for members to embrace robo-advice.<\/li>\n<li>Robo-advice is a very costly process to setup.<\/li>\n<li>It will take a long time before the robot advice process and implementation of advice will become operationally efficient.<\/li>\n<\/ol>\n<h3>SESSION 1 \u2013 AUSTRALIA\u2019S AGEING POPULATION &#8211; WHAT YOU NEED TO KNOW<\/h3>\n<p><strong>Prof Hazel Bateman<\/strong><\/p>\n<ul>\n<li>People continue to save in retirement in Australia, therefore are not drawing down their pension as expected.<\/li>\n<li>People on full government pensions and low super are still saving.<\/li>\n<li>Four key reasons why people continue to save in retirement:<\/li>\n<\/ul>\n<ol style=\"margin-left: 40px;\">\n<li>Health\/aged care risk<\/li>\n<li>Self-gratification<\/li>\n<li>Autonomy<\/li>\n<li>Security<\/li>\n<\/ol>\n<p><strong>Prof John McCallum<\/strong><\/p>\n<ul>\n<li>People want to deal with people, especially older Australians.<\/li>\n<li>$17.4B in aged care services last financial year and growing.<\/li>\n<li>80% of older Australians receive some government services before death.<\/li>\n<li>57% of people would pay 10% of their super on retirement to receive income for life.<\/li>\n<li>Women in the superannuation era are the most vulnerable and long living.<\/li>\n<\/ul>\n<h3>SESSION 2 \u2013 KNOCKING ON THE DIGITAL DOOR<\/h3>\n<p><strong>Megan Cottrell \u2013 GM Digital Advice, Hesta<\/strong><\/p>\n<ul>\n<li>Digital advice is used to engage audience, it is a means to start a conversation with members. Hesta is making it easy for members to engage through mobile access as 25-45yr old members are most engaged online.<\/li>\n<li>Hesta\u2019s research indicates that members feel they are not of \u2018high-enough value\u2019 therefore members feel they are not worthy of advice.<\/li>\n<li>Face to face advice model won\u2019t work for Hesta because Hesta don\u2019t have the capability to service 840,000 (majority female) members. Digital advice enables scalability.<\/li>\n<\/ul>\n<p><strong>Josh Parisotto \u2013 Executive Manager Distribution (Advice), Vic Super<\/strong><\/p>\n<ul>\n<li>42% of intra-fund advice is expected to be provided via digital channel in five years.<\/li>\n<li>Members are looking for a financial coach. Members want transparency, simplicity and speed.<\/li>\n<li>Member problems\/issues:<\/li>\n<\/ul>\n<ol style=\"margin-left: 40px;\">\n<li>Super is too complex<\/li>\n<li>Retirement to too far away<\/li>\n<li>In denial about not having sufficient funds in retirement<\/li>\n<li>Regret in not contributing more, earlier<\/li>\n<\/ol>\n<ul>\n<li>Vic Super\u2019s main focus is to engage members early through online tools and calculators.<\/li>\n<li>Voice activation is the way forward for members.<\/li>\n<li>Members are able to generate SoAs for contribution and investment option advice. The majority of advice provide relates to contribution advice tackling the issue of retirement adequacy.<\/li>\n<li>Over 50 year-old individuals still want face-to-face meetings.<\/li>\n<\/ul>\n<h3>SESSION 3 \u2013 THE SECRETS OF MEMBER ENGAGEMENT<\/h3>\n<p><strong>Geoff Brooks \u2013 Head of Marketing and Advocacy, Equip<\/strong><\/p>\n<ul>\n<li>Retention\/conversion rate from accumulation accounts into account-based pensions for members:<\/li>\n<\/ul>\n<ol style=\"margin-left: 40px;\">\n<li>With no financial planning = 7%<\/li>\n<li>Meet a financial planner = 64%<\/li>\n<li>Meet a financial planner and full implementation of advice =72%<\/li>\n<\/ol>\n<p><strong>Anne Fuchs \u2013 Head of Advice, Sun Super<\/strong><\/p>\n<ul>\n<li>Average age of Sun Super members is 35 years old.<\/li>\n<li>In 2017, Sun Super changed direction to focus on retirement for members.<\/li>\n<li>Retail super funds have the lion share of the pension assets because members want to deal with people when they retire.<\/li>\n<li>Sun Super closed their comprehensive advice offering (refer out) and only offer intra-fund advice<\/li>\n<\/ul>\n<p><strong>Greg Harper \u2013 Head of Advice and Retirement, CBUS<\/strong><\/p>\n<ul>\n<li>Value of help and assistance to members is more important than advice.<\/li>\n<li>No significant proof that there is a demand for robo-advice.<\/li>\n<\/ul>\n<h3>SESSION 4 \u2013 ADVICE PRACTICE MANAGEMENT MODELS<\/h3>\n<p><strong>Colin Williams, Comparator<\/strong><\/p>\n<ul>\n<li>Continued reduction in the number of face-to-face advisers across the industry. Only one third of bank, self-employed and super funds had positive adviser growth.<\/li>\n<li>Super funds typically employ advisers with more experience and higher qualifications that thee banks and other salaried businesses<\/li>\n<li>Base salaries tend to be higher at super funds although total remuneration is higher at banks.<\/li>\n<li>The telephone advisers often come from within the broader business and generally move to another role within the business.<\/li>\n<li>In our digital advice study, we saw a small decrease in the number of SoAs produced.<\/li>\n<\/ul>\n<p><strong>Frank Ceravolo &#8211; National Manager Advice, Australian Super<\/strong><\/p>\n<ul>\n<li>Allow all members to have access to help and advice<\/li>\n<li>Be comfortable in your own skin<\/li>\n<li>Three basic advice channels:<\/li>\n<\/ul>\n<ol style=\"margin-left: 40px;\">\n<li>Digital<\/li>\n<li>Phone based advice \u2013 via Link<\/li>\n<li>Face-to-face \u2013 internal and external<\/li>\n<\/ol>\n<ul>\n<li>Recruitment strategies \u2013 previous 2-3 years aggressive growth in adviser numbers. Two people left in last 12 months and didn\u2019t replace them as there is not enough demand from members.<\/li>\n<\/ul>\n<p><strong>Maurizio Lombardi \u2013 Head of Advice &amp; Fin Planning, Hostplus<\/strong><\/p>\n<ul>\n<li>Nine advisers nationally \u2013 five females and four males (average age 45)<\/li>\n<li>Four in-house advisers covering intra-fund advice. Two males two females. All hold advanced diploma at a minimum. Average age is 30.<\/li>\n<li>Recruitment \u2013 phone-based advisers growing from one to four in last 18 months. This will increase rapidly in the coming years. The fit is the big concern.<\/li>\n<\/ul>\n<p><strong>Steve Cullen \u2013 Executive GM, Financial Planning, Telstra Super<\/strong><\/p>\n<ul>\n<li>Recruitment \u2013 phone-based team put in two years ago and this continues to grow.<\/li>\n<li>Advisers get referred through existing employees. The gloss of a higher salary starts to wear off at a bank if there is no support.<\/li>\n<li>Cultural fit is the key theme when searching for advisers.<\/li>\n<\/ul>\n<h3>SESSION 5 \u2013 ADVICE TEAMS: MAKING THE BEST OF PEOPLE POWER<\/h3>\n<p><strong>Dr Deen Sanders &#8211; Financial Adviser Standards and Ethics Authority<\/strong><\/p>\n<ul>\n<li>ASIC Report 562- January 2018 \u2013 75% of advice was non-compliant<\/li>\n<\/ul>\n<p><strong>Adrian Raftery \u2013 Deakin University<\/strong><\/p>\n<ul>\n<li>Research indicates that 5,000 \u2013 8,000 advisers will leave the profession by 2024.<\/li>\n<li>Cost of new recruits\/graduates will be costly.<\/li>\n<li>Organisational structure is more important that the student\u2019s results\/potential.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><strong>Matt McGilton &#8211; Director<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-family: 'Open Sans', sans-serif; font-style: inherit; font-variant-ligatures: inherit; font-variant-caps: inherit; font-weight: inherit;\">Kaizen Recruitment specialises financial services recruitment across funds management, wealth management, superannuation, investment consulting and insurance. We are based in Melbourne and Sydney.\u00a0<\/span><span style=\"font: inherit; margin: 0px; padding: 0px; border-width: 0px; outline: 0px; box-sizing: border-box;\">For assistance or further information please telephone our office at\u00a0<a style=\"margin: 0px; padding: 0px; border-width: 0px; font: inherit; outline: 0px; box-sizing: border-box;\" href=\"https:\/\/tel:+61390957157\/\">+61 3 9095 7157<\/a>\u00a0or\u00a0<\/span><a style=\"font: inherit; margin: 0px; padding: 0px; border-width: 0px; outline: 0px; box-sizing: border-box;\" href=\"https:\/\/www.kaizenrecruitment.com.au\/contact\/\" target=\"_blank\" rel=\"noopener\">submit an online form<\/a><span style=\"font: inherit; margin: 0px; padding: 0px; border-width: 0px; outline: 0px; box-sizing: border-box;\">.<\/span><\/p>\n<p style=\"text-align: right;\">Like what you see?<\/p>\n<p style=\"text-align: right;\">Please feel welcome to join<br \/>\nKaizen Recruitment&#8217;s mailing list<\/p>\n<p style=\"text-align: right;\"><strong style=\"margin: 0px; padding: 0px; border-width: 0px; font-style: inherit; font-variant: inherit; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit; text-align: left; outline: 0px; box-sizing: border-box;\"><a id=\"subscribe-to-mailing-list\" class=\"mini-new-buttons\" style=\"margin: 0px; padding: 0.4em 1.5em; border-width: 0px; font-style: inherit; font-variant: inherit; font-weight: inherit; font-stretch: inherit; font-size: 15px; line-height: inherit; font-family: 'Open Sans', sans-serif; outline: 0px; color: #000000; text-decoration-line: none; box-sizing: border-box; display: inline-block; background: #ffcb06; cursor: pointer;\" href=\"https:\/\/eepurl.com\/b9ksvn\" target=\"_blank\" rel=\"noopener\">SUBSCRIBE<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Kaizen recently took part in AIST\u2019s Advice in Super Symposium and would like to share a number of important key themes. There was an outstanding cross-section of industry leaders exchanging their experiences, views and predictions around the state of advice in superannuation. On a whole, the message was that there is a growing demand for&hellip;<\/p>\n","protected":false},"author":17,"featured_media":15096,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","footnotes":""},"categories":[56],"tags":[139,63,84],"class_list":["post-15093","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-events","tag-funds-management","tag-kaizen-recruitment","tag-wealth-management"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.kaizenrecruitment.com.au\/af-api\/wp\/v2\/posts\/15093","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.kaizenrecruitment.com.au\/af-api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.kaizenrecruitment.com.au\/af-api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.kaizenrecruitment.com.au\/af-api\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/www.kaizenrecruitment.com.au\/af-api\/wp\/v2\/comments?post=15093"}],"version-history":[{"count":2,"href":"https:\/\/www.kaizenrecruitment.com.au\/af-api\/wp\/v2\/posts\/15093\/revisions"}],"predecessor-version":[{"id":15833,"href":"https:\/\/www.kaizenrecruitment.com.au\/af-api\/wp\/v2\/posts\/15093\/revisions\/15833"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.kaizenrecruitment.com.au\/af-api\/wp\/v2\/media\/15096"}],"wp:attachment":[{"href":"https:\/\/www.kaizenrecruitment.com.au\/af-api\/wp\/v2\/media?parent=15093"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kaizenrecruitment.com.au\/af-api\/wp\/v2\/categories?post=15093"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kaizenrecruitment.com.au\/af-api\/wp\/v2\/tags?post=15093"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}