FHSS scheme an opportunity for super funds

Yasmine Raso

Senior Journalist, Financial Newswire

30 November 2022

Superannuation funds have been encouraged to use the First Home Super Saver Scheme (FHSS) as an opportunity to connect and engage with younger members before they begin to contemplate retirement.

Melbourne-based creative agency, SGY, said the FHSS scheme could be a major avenue for super funds to reach a younger cohort since they already provide support, advice and guidance around it.

“It can lead to members viewing their fund as a valuable partner in their dreams of homeownership and their future lifestyle,” the agency said in a release today.

“Early engagement and seizing the chance to simultaneously provide information, insight and education, can be a very powerful tool in creating long-term affinity and brand loyalty.”

“While most super funds have provided some information on the FHSS Scheme through their website or an article, the scheme has received minimal promotion since its launch. It’s therefore no surprise that member take-up of the scheme has been low.

“Through discussions with super funds and aligned industries, we’ve discovered that member understanding of the scheme can also be improved.”

The agency also said despite the scheme receiving “a frosty welcome” for allowing members to access retirement funds earlier when it was first introduced in 2017 to mitigate the impacts of home ownership unaffordability, it can offer many benefits.

“Putting aside that early access to super goes against the purpose of the superannuation system, we believe there is a positive side to the FHSS Scheme,” SGY said.

“It presents a unique opportunity to engage with and support younger members, connect them with their super and help them overcome challenges in homeownership.”

“Despite a lack of awareness and understanding, there is still substantial interest in the scheme. Our research on Google searches indicates that approximately 150,000 people searched for FHSS (and associated terms) in 2021. This has since increased by 200% to around 450,000 searches.

“More importantly, these searches are coming from cohorts younger than those who typically search for super. This is a topic that’s not only aligned with super funds’ interests but also important to disengaged members, so initiating the conversation will give them the sense of connection they’ve been missing.

“The level of interest presents an opportunity for funds to provide support and insights into related First Home Owners Grant schemes that younger members are also searching for and can use in conjunction with the FHSS scheme.”