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Younger super fund members want expanded advice options
Younger superannuation fund members are signalling they want more from intrafund advice and are happy to be transferred to a financial adviser, according to new research from Investment Trends.
The Investment Trends 2020 Financial Advice Report has revealed that there is strong awareness among superannuation fund members interested in access financial advice services with one in six saying they currently use intrafund advice services.
However, the Investment Trends research suggests that these members want to access a broader spectrum of advice topics.
Investment Trends senior analyst, King Loong Choi pointed to the level of interest in more advice.
“Many members rely on their super fund for help across a range of intra-fund topics, most often seeking advice around voluntary super contributions, switching investment options and retirement planning,” he said.
“Yet, there is enormous demand for topics outside the current scope of intra-fund advice, particularly among younger super fund members (77% of those under 35 would like to receive this vs 70% for the broader population). The key areas of interest include investments outside super, tax strategies and budgeting assistance.”
“Further, advice via super funds can lead to planner referrals, with 55% of members open to being transferred to a planner. Older members favour a super fund-based planner, while their younger counterparts are more inclined to seek out an independent planner,” Choi said.
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As an adviser for millenials I totally concur with everything that has been said in this article. The major roadblock is that most millenials are with industry super funds who do not support financial advice especially from external advisers. Once the industry super funds allow external advisers to charge ONGOING fees from their products without a harsh %age based cap, then advisers will be able to service millenails even more so. Unfortunately the system at present means that no one wins.
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