Super needs to adapt to changing times
The original intent of Australia's superannuation system remains sound but times have changed and superannuation funds are going to have to adapt including accepting the increasing role of financial advice, according to senior industry superannuation executive, First State Super chief executive, Michael Dwyer.
Addressing an Australian Securities and Investments Commission (ASIC) forum, Dwyer noted the degree to which Australian society had changed since the introduction of the superannuation guarantee including the fact that retirees intake major capital cities were today less likely to enter retirement owning their own homes.
He said that it was in these circumstances that super funds, with their great scale, assets under management, technical capabilities and connection with members from an early age, could make a tangible difference to Australians facing a disrupted world.
"Trustees and fund employees have the power to think innovatively about working with each other, with service providers and partners to make super even more useful to members at all stages of life," Dwyer said. "This will take a lot of trust, leadership and in some cases an examination of super fund cultures to align them to new ways of thinking and serving members."
"More specifically, there are opportunities for increasing the role of financial advice in super and further developing investment philosophies and growth strategies in line with the greater social good. We also have to engage and tell stories to win the current and future generation of retirees – facts are great, but stories capture our imaginations and our hearts."
Dwyer said the industry struggled to engage with a 25-year old’s imagination and help them to consider what life could be like in 40 years’ time and this was something it needed to overcome.
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