Advisers key to super outcomes
Financial advisers, including the use of robo-advisers, are central to the success of modern pension and superannuation plans, according to new research released by Ernst & Young (EY).
The research, the EY Global Pension Survey report, was released today and makes clear that while so-called "opt-out solutions, based on member inertia assumptions, are rapidly growing in popularity they are not necessarily correct for many members.
Pointing to the role of advice, the EY report said that leading countries were rapidly embracing the need to fill the "enablement and empowerment gap".
"The converging solutions for pension, retirement and wealth management in several countries are excellent starting points to understand how to empower informed decisions," it said.
"Recent analytics-based robo-advice solutions are examples of a road map forward.
"Few systems and providers realise the importance of adequately empowering employers in the fast-growing world of choices. Human Resources staff are often the first portal for employees seeking guidance."
It said that social validation played an important role and that much could be learned from the travel, hospitality or life insurance industries.
"Imagine an independent and trusted retirement adviser platform where members and employers can rate their experiences, search, inform, track and transact," the EY Research said.
It said that digital pension and well-being offerings had a significant opportunity to disrupt and transform.
The EY analysis concluded that empowering superannuation and pension fund members to make informed decisions was a key and that this included both online and offline communications, tools and financial advice that was fit for purpose.
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