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TAL backs empowering super funds on retirement guidance

Mike Taylor1 March 2024
Hand helping man

Australia’s largest group life insurer, TAL has suggested empowering superannuation funds to guide or transition members into retirement income accounts based on the judgement of trustees.

TAL said it believes there is merit in considering a regulatory framework that “permits superannuation funds to guide or transition members into an appropriate retirement income product in certain circumstances”.

In doing so, TAL has pointed to the need for advice and the dearth of financial advisers.

“For this reason, TAL is supportive of the Australian Government’s Delivering Better Financial Outcomes package,” it said.

“Of particular importance are the proposals to introduce a new class of adviser authorised to provide simple financial advice to superannuation members.

“We believe these changes and other supporting reforms will enable millions of Australians to obtain the retirement advice they need and encourage consideration of retirement income products that are in their long-term interests.”

On the question of empowering superannuation funds to guide members into retirement income products, TAL said that despite the best efforts of superannuation funds to educate their members and help them take control of their account, some members did not take an active interest in their superannuation.

“Members reaching preservation age but not actively managing their superannuation should not miss out on the benefits of a retirement product. Therefore, where a superannuation trustee forms the view that it is in the best financial interests of the member to be guided or transitioned into a retirement income product, the trustee could be empowered to do so.”

“Importantly, members should be permitted to opt-out of being transitioned and be given ample information and opportunity to do so. Based on industry experience with the Protecting Your Super changes (which saw higher than expected member response rates), communications informing superannuation members that a change will occur in the absence of action can boost member engagement.”

Mike Taylor

Mike Taylor

Managing Editor/Publisher, Financial Newswire

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Conflicted Views
1 month ago

So TAL as part of the Life Ins Co’s that pushed LIF, that worked well hey.

Now as Industry Super Group Life is their main business they will push what Industry Super want.

Self Interested product floggers have a single desire to flog more product.
And have zero real interest in positive consumer outcomes.

Like forcefully defaulting Super into locked up Lifetime Pensions.
NOW THATS GOING BE A BONAZA FOR AFCA complaints later hey !!!!

Matthew Benson
1 month ago

Let’s face facts, no one gives a stuff about Advisers, certainly not Canberra, and certainly not Instos.

Frank
1 month ago
Reply to  Matthew Benson

Yeah, no conflicts of interest right…?

Standard 3 doesn’t apply to legislators or instos does it?

Max Tuckwell
1 month ago

what was the whole point of the disaster called the “Royal Commission into Financial Services”?
We are back to ground zero.
Only a moron( there appear to be plenty associated with financial services ) would imagine that the same old practices carried out by the large
funds won’t happen again.
However this time those with a grievance will not be permitted a voice. They will be silenced by trade union funds, sympathetic regulators and lacky polticians.
Goodbye independent financial advice.

Scott
1 month ago

TAL backing their self interest has been a long standing tradition. Nothing unusual here as a result.

Anonymous
1 month ago
Reply to  Scott

Did anyone else get an email recently saying TAL are backing financial advisers – what a load of bs.

MJG
1 month ago

With 15,000 Advisers still registered, maybe it’s time for us collectively to tell ASIC to jam their levy where the sun don’t shine. Although if TAL’s voice is heard in Muppetville and we end up with the BIG players back in the game, then one would hope the ASIC Levy decreases substantially. Is that a silver lining or will pig fly?

Has Shoes
1 month ago
Reply to  MJG

Not too sure that the levy will decrease substantially, but one can hope, the levy per AFSL is only $1,500 per year and since the “qualified advisers” are unlikely to pay any levy…there goes that hope. 🙁

Frank
1 month ago
Reply to  MJG

Pigs flying.

Anon
1 month ago
Reply to  MJG

It’s a nice theory, but remember ASIC’s whole strategy is to decimate professional financial advice through regulatory strangulation and vicious persecution for the slightest adminstrative oversight. There is nothing ASIC would like better than advisers not paying levies, as it would give them an opportunity to quickly cull more professional advisers.

bemused
1 month ago
Reply to  Anon

Supported by Dealer groups that love complexity. They love the multiple ASIC websites and the feedback they provide is ZIP.

bemused
1 month ago
Reply to  MJG

Collectively tell Dealer Groups and the FAAA who will then say “no concerns all good”. Dealer Groups love complexity to justify their fees as well as audit departments and FAAA sees their future tied to AwareSuper. Advisers sit around scratching heads as to why no one listens.

Chris
1 month ago

Disappointing to see TAL so blatantly become the enemy of proper financial advisers.

Old Risky
1 month ago
Reply to  Chris

Don’t be disappointed. It was always thus. I have been telling “newbies” for years that insurers ONLY love you while you keep giving them business. Deep down most insurers hate advisers, particularly those who are self-employed, but have to put up with them. Or in TALs case, they did so until NOW !

TAL have been gifted by Minister Jones, and you don’t look a gift horse in the mouth. It’s all about shareholder value and CEO bonuses

Frank
1 month ago

The stock photo used in this article results in the next step being a fall. Possibly losing his teeth in the process. Nice picture.

XTA
1 month ago

Industry Super: Hi TAL your insurance mandate is coming up for renewal. If you come out in the media and back us to retain FUM then we will consider renewing the contract.

MJG
1 month ago
Reply to  XTA

Yeah, no conflict there ha!

bemused
1 month ago

Never using TAL again. Goodbye

bemused
1 month ago

I send in an authority to enquire form to these super funds and their Adviser team are on the phone the next day poaching the client, asking “you must need advice, we have advisers too”. Meanwhile their call centre tells me it’s not loaded yet.

We’re putting Dracula in charge of the blood-bank and these boiler room Super fund advisers are going to suck Australians dry. TAL is proposing they go out an start employing back packers to cold call consumers.

In the UK the number of clients Advisers look after is almost double what it is in Australia. We need to tackle the issue from multiple angles.

Last edited 1 month ago by bemused