The fund announced on 25 October that it will charge $990 to Cbus members and their spouse or partner for access to “strategic financial advice” via the fund’s “internal financial experts”, even if the partner is not a fund member.
The service called Advice Essential Plus is designed to meet the common yet critical needs of couples preparing for retirement by offering simple advice that, while not complex, is essential to ensuring a dignified retirement, Cbus said.
The fund’s deputy CEO and chief member officer, Marianne Walker, explained many Cbus members retire as a couple and will rely on the age pension to supplement their income. However, until now, the fund’s advice services were restricted to individual members only.
“Following a survey of our members it became clear that they wanted Cbus to provide this service because they trust their fund and the fees associated with utilising external financial planners were cost prohibitive,” said Walker.
“Most of our members retire as a couple and will rely on some degree of age pension to fund their retirement. Centrelink treat couples as a family unit but up until now we’ve only been able to give advice to the Cbus member.
“We’re really pleased to have developed this offering to address that member need to expand basic advice to the household. It is a more realistic addressing of post-work life, of that intersection with Centrelink, and that a couple plans together for retirement.”
According to Walker, Cbus members were deterred by the high costs of external financial advice, prompting the fund to create an in-house solution that bridges the gap between its basic Advice Essentials and comprehensive advice offerings.
“Our members often required a bit more than Advice Essentials could offer but couldn’t or wouldn’t consider the comprehensive advice from external providers, usually due to the cost. That’s why we have worked to develop an affordable option that meets our member’s needs,” she said.
Initially, face-to-face consultations will be available at Cbus’ Melbourne office, with online meetings for those outside the city. By 2025, Cbus plans to expand in-person consultations nationwide, aiming to bring down costs further and even take advisers into regional areas.
Earlier this month, Otivo and CFS officially launched their $88 digital advice tool for unadvised FirstChoice members, while acknowledging that “digital advice is not for everyone”.
At the time, CFS superannuation CEO Kelly Power noted that the company’s research has found almost two-thirds of Australians under 40 are open to a digital advice solution.
“We know that Australians who receive advice are far more confident and significantly more positive about their financial position than those who are unable to access advice,” Power said.
“New technology and digital tools will have a role to play, but we recognise that digital advice is not for everyone. That’s why our focus is on making sure that advice is more accessible to all of our members, delivered in the right way at the right time.”
