Recent share market slumps have put pressure on superannuation funds to do more for their members than simply delivering positive investment returns, according to Plum Financial Services.
Speaking at the Marcomms Conference in Sydney, Plum product and strategy manager Peter Talacko said in a post choice environment super funds had increasingly begun to offer more to members than just a good investment return.
“At Plum we changed the way corporate super funds approached their superannuation offer when we first hit the market nine years ago, focusing on member education and services,” he said.
“The recent run of share market losses and members’ reactions to them demonstrate that simply delivering good investments returns are just half of the picture. If a super fund has nothing else to offer their members when there is a run of bad investment returns, why would a member stay with that fund?”
Talacko explained that although good investment managers, as well as a good investment menu and choices, were integral to Plum’s philosophy, it also tried to better educate members, so when investment returns were not so good members were in a better position to weather the storm.
“We help members better understand their investment options so they make better choices depending on their particular circumstances. We also apply behavioural finance concepts to our education and products where possible to ensure we actively engage as many members as possible,” Talacko said.
“When the investment markets are going well everyone’s super is growing. It’s when investments are not going so well that super providers need to ensure they are still offering their members advice and assistance to put them in the best possible position to meet their retirement goals.”
