The super industry's efforts to resolve the baby boomer bubble has focused too much on asset allocation and product solutions rather than holistic solutions that start with advice and members' cashflow considerations.
Colonial First State senior executives said there had been an over-focus on developing a "silver bullet" to resolve the looming demographic challenge, when real solutions started with accessible and affordable advice.
Peter Chun, Colonial's general manager of product and investments, said retirees gravitated around their bank account and wanted the superannuation industry to provide flexible ways to manage their cashflow in retirement.
"I think industry has thought we'll build this great mousetrap," Chun said.
Cashflow considerations such as the minimum pension amount and the implications of aged care needed to be nutted out, they said.
Linda Elkins Colonial's executive general manager said banks could do more to support Australia's superannuation industry, as demographics changed, through their breadth of services.
"We are in a good position to listen to the voice of the customer," she said.
But legislative changes were needed to promote the development of suitable product solutions, according to Elkins.
Product was the final consideration in providing a retirement solution, Chun said. He said an allocated pension could provide the strong bedrock from which to manage member's cashflows.
It was more flexible and could be integrated with online banking compared to lifetime annuities, which were locked in and capital intensive, he said.
Michael Lovett, who left the investment firm just three months after launching its Vanguard Super offering, has taken up a chief executive role at an Australian asset manager.
The Central Bank of Ireland has granted the approval of Equity Trustees’ exit from its Irish operations, with the transaction expected to be complete on 30 April.
Super returns continued to climb in March, raising hopes of delivering double-digit returns by June depending on the performance of this next quarter.
The dedicated super fund for emergency services and Victorian government employees is under fire for unpaid entitlements to transport employees, which could exceed $40 million.
Add new comment