If workplace superannuation is to continue to be an important part of an employer’s value proposition, the way it is supported and promoted will become increasingly important, according to leading actuarial research house, Rice Warner.
In an analysis of the Government’s new superannuation stapling proposals, Rice Warner acknowledged that stapling has the potential to reshape the superannuation landscape but, at the same time, not necessarily represent the death of workplace super.
The analysis said that while stapling might represent the death of default superannuation, this was not necessarily the case with respect to workplace superannuation particularly if funds and employers were innovative in terms of seeking to attract members.
“Employers may treat their employees’ superannuation fund like a bank account – where they make the contribution with little care for where it goes. If workplace superannuation is to continue to be an important part of an employer’s value proposition, the way it is supported and promoted will become increasingly important,” the Rice Warner analysis said.
“The typical workplace distribution channel for superannuation funds will undoubtedly shift. Funds will need to look for new methods to seek new members. Funds may consider targeting family members of existing members or look to see what inducements they can offer to bring in new members.
“For the funds that adapt to this new environment, we expect higher levels of retention and longer membership duration. This will likely lead to larger balances and higher levels of engagement. Funds may need to consider their fee structure and member engagement proposition as member demographics shift,” it 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.
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