Retail super funds moving ahead of DBFO

ANALYSIS

The Federal Government is heading off to a General Election with most of its financial service policy initiatives incomplete, particularly Delivery Better Financial Outcomes (DBFO) but the major superannuation funds, both industry and retail, are moving ahead regardless.

And it is has been the major retail superannuation players who have been moving faster than most.

While the industry funds have been actively looking at their opportunities, it has been private equity-backed Colonial First State (CFS) which has been seizing the initiative to deliver more to members of its superannuation funds.

CFS announced yesterday that it would be giving members and their families a guidance and advice service around aged care for a discounted, once-off fee of $350 and this follows on from the company’s announcement in October, last year, of a new, tailored digital advice offering at $88 a year.

CFS then followed its $88 digital advice announcement with news that it had entered into an arrangement with Viridian Advisory allowing CFS FirstChoice superannuation, pension and investment members who do not have an adviser to access affordable, one-off, topic-based financial advice.

It said the advice from Viridian would be accessible in modular blocks starting at $500, with any combination of blocks capped at $3,000.

AMP Limited, having exited its advice licenses to AZ-NGA and Entireti, last month announced delivery of a digital advice solution for AMP super fund members developed in partnership with software provider, Bravura Solutions.

At the same time, the major industry superannuation funds body, Super Members Council, has urged the Government to move on the DBFO second tranche to enable funds to deliver simple information and advice to members, particularly around retirement.

The SMC actually listed giving superannuation funds the ability to give members retirement income estimates high on its list of policy priorities.

“Super funds should be able to give Australians a retirement income estimate when they want one – not just once a year,” it said.

With the Prime Minister, Anthony Albanese expected to move to call the Federal Election within a week or so, the second tranche of the DBFO is unlikely to be debated in the Parliament in the first half of this year.