Funds might tread carefully with their intra-fund strategies but work being done by policy makers and the funds themselves around retirement solutions will open new pathways for advice within superannuation.
It’s all well and good to say super is all about accumulation of funds for members during their working lives but according to AustralianSuper Chair Donald Russell funds also have a responsibility to provide advice.
Members aren’t looking for holistic financial planning advice in the sense of a traditional six-step financial planning process - they are looking to solve practical and immediate problems, they are looking for decision support, and they’re looking to learn, but not necessarily be educated or taught.
The emerging advice gap has reinvigorated industry discussions about the future of advice and the part super fund advisers will play. While intra-fund advice plays an important role in the financial system, the data shows it is no substitute for full service financial advice.