Superannuation funds too distracted to educate members

Superannuation funds are failing to focus on member education because they are too distracted by other concerns and are at risk of losing members, according to online financial and superannuation educators Money101.

Industry issues such as superannuation reforms, consecutive negative returns and mergers and acquisitions are taking up too much super fund attention and members were being ignored, according to Money101 chief executive Catherine Birchall.

Years of bad returns were also pushing members to leave their fund and start up their own SMSF, but the superannuation funds were neglecting the concerns of those members to focus on other issues like merger activity and compliance, she said.

Birchall said superannuation funds really needed to push member engagement. She agreed that super funds should also be informing members about what they were actually doing that was keeping them so busy. 

Superannuation funds were exhausted from all the changes in the industry, she added. 

Money101 business development and marketing manager Laure Liger urged superannuation funds to put proper policies in place to deal with legal problems when communicating to members through social media.

Funds had to create clear boundaries between marketing, and providing, advice through social media, Birchall said.