Australians want more financial support from super funds

Oksana Patron

25 May 2023

In the face of rising interest rates and inflation at all time high, almost nine in 10 Australians would like their superannuation funds to offer financial advice, according to the research by Otivo, a digital advice platform founded by former adviser, Paul Feeney.

The expectations for super funds to offer more support were expressed by 11.8 million Australians, as per Otivo’s research, and coincided with the rise of new technologies which can enable super funds to, in fact, provide members with personal scaled advice through digital channels.

According to the research, most Australians (90%) would expect super funds to provide advice on factors affecting their financial future, such as mortgage payments, overall cash flow and debt consolidation.

Ian Knox, who is chairperson at Otivo, said that now was the time for action for Australian superannuation funds to help all Australians.

“Right now, superannuation providers are restricted in being able to provide sufficient financial advice, leaving more than 13.8 million working Australians with limited to no access to advice,” he said.

“Australia doesn’t have the human resources to handle this demand. We need to look at a digitalised comprehensive solution that provides a holistic approach to our financial wellbeing, is accessible on line, cost effective yet considers and supports those who give personal advice the most.”

At the same time, he welcomed legislative support from the Government enabling super funds to have payment of advice fees deducted from the members account but noted that it was essential the fees were “minimal, cost effective and not open to abuse”.

Otivo’s report also supported the fundamental role digital financial advice and technologies should play in redefining the financial future of Australians.

Other findings from the report stressed that the majority of Australians were financially unaware when it came to their superannuation, with almost two in five of citizens still choosing their superannuation fund based on who their employer sets them up and less than one in five were doing their own research to choose a super funds most suitable to their current situation.

Also, almost four in five (79%) of Australians would like their superannuation fund to be more proactive in sharing advice, tips and updates on how their super is performing while 78% would like their super fund to give them advice around how much insurance cover they should have, as 42% of Australians do not know how to change their insurance in their superannuation.