Financial industry needs to change to communicate with younger super clients
|
|
As the superannuation assets of generations X and Y increase as a proportion of total superannuation assets in the future, financial planners, regulators and the superannuation industry will have to change the way they respond to and communicate with these groups, according to Michael Monaghan, partner of Deloitte Actuaries and Consultants.
Monaghan made these comments at a Deloitte media briefing on superannuation growth, where the results of a study to model superannuation growth showed that generations X and Y were expected to hold 84 per cent of all super assets in 20 years time.
Monaghan said the industry would have to change the way it operated to reflect the conditions that generations X and Y grew up in.
The younger generations were used to changing jobs many times during their career, Monaghan said, and there would have to be a greater degree of portability within the super system to cater for these workers, he said.
Generations X and Y were also used to communicating on the Internet, where a social network of peers, containing perhaps thousands of people, was important when making decisions. This method of communication would have a massive impact on financial advice, Monaghan said.
It would also create a challenge for the industry regulators, as the regulators would need to work out how to make their voices heard in a forum that operated outside the normal regulatory system.
New retirement products also needed to be developed for baby boomers, who would begin to draw their money out of the super system in the future, Monaghan said.
Superannuation assets were expected to top $7 trillion by 2028, according to the report.
Recommended for you
A former Sydney investment manager has pleaded guilty to two counts of insider trading regarding a potential takeover of Platinum Asset Management, having acquired $2.6 million of Platinum shares.
As the firm enters a new growth phase, Orbis Investments managing director Jason Ciccolallo has said it is looking to strengthen relationships with retail advisers to align with the firm’s institutional reputation.
The former director of United Global Capital has received a decision from the Administrative Review Tribunal regarding an appeal of his 10-year ban from providing financial services.
AMP-owned North has announced a senior manager appointment as the platform explores growth opportunities in its addressable adviser market.
