Confronting individuals about their likely annual income in retirement will become a common tactic used by superannuation funds to engage members, according to J.P. Morgan's Donn Hess.
Hess, a US retirement plan specialist, told the delegates at the Association of Superannuation Funds of Australia Conference in Sydney that this particular tactic had worked in the US.
He said providing individuals with tangible income projections and incorporating them into data-driven communications had helped capture US pension plan members' attention, encouraging them to take action to build their retirement savings.
"We're starting to have a better idea of what works to reach and motivate people, and advances in technology and data analytics are set to empower these programs to achieve real change in the retirement prospects for many Americans," Hess said.
His comments came as member satisfaction with their super funds continues to dwindle.
Recent Roy Morgan research suggested 42 per cent of members in retail super funds were satisfied with the performance of their fund, compared to 49 per cent for industry funds and 64 per cent for self-managed super funds.
