Super funds step in to provide affordable financial advice for Australians’ retirement
- Replies 1
Navigating the complexities of financial planning and superannuation can be a daunting task for many Australians, especially as retirement approaches.
The good news is that accessing expert financial advice has become more affordable and accessible than ever before.
Thanks to new legislation, Australians can now tap into financial advice from their super funds for less than $100, a move that could revolutionise the way we plan for our golden years.
The Albanese government has introduced reforms that allow super funds to provide limited advice and financial education to their members.
This initiative is part of a broader effort to close the ‘advice gap’ that has emerged due to a critical shortage of financial advisers in the country.
The shortage was worsened by the banking royal commission in 2019, which led to increased regulations and costs for financial advisers, causing many to leave the industry and the remaining ones to raise their fees.
For everyday Australians, the cost of financial advice has often been a barrier to seeking help.
Research indicates that while there is a desire for financial guidance, the willingness to pay the high fees associated with traditional financial advice is low.
This is where super funds are stepping in to fill the void with affordable and accessible options.
Super funds like Colonial First State (CFS) and HostPlus are leading the charge by developing digital tools that offer free or low-cost advice.
These tools are designed to help members make informed financial plans for retirement, providing a self-guided path to understanding how much they need to save for a comfortable future.
For example, CFS members can use their tool unlimited times over a 12-month period for an $88 fee deducted from their super account.
CFS CEO Kelly Power highlighted that while many consumers understand the importance of actively managing their superannuation for wealth growth, confusion around investment performance is hindering their ability to make informed decisions.
‘As an industry, we need to do more to demystify super and drive engagement so that more Australians feel confident making decisions about their financial future,’ she said.
HostPlus has introduced SuperSmart, an education-led digital tool that is free for all members.
It aims to help members prepare for better retirement outcomes by providing them with the necessary knowledge and resources.
UniSuper has established a strong presence in financial advice, offering a national team of professionals, a finance advice centre, and automated, age-targeted journeys with educational content for retirement preparation.
As five million Australians near retirement, the demand for affordable financial advice is growing.
Research indicates that while many are interested in financial advice, most are reluctant to pay the high fees of around $3,960 annually, which have risen by 58 per cent over the past five years due to inflation and rising interest rates
Investment Trends research reveals that nearly four million Australians are open to low-cost digital advice, with those without financial advice willing to spend an average of $570.
Most consumers seek assistance with investment strategies, longevity risks, and growing their superannuation.
Meanwhile, financial advisers are frustrated by the rising annual levy required by the Australian Securities and Investments Commission and other fees necessary to maintain their licenses.
As Australians look for more affordable ways to access superannuation advice, one solution comes in the form of budget-friendly consultations that cost less than $100.
This shift towards accessible financial guidance is being welcomed by many, particularly seniors, as a way to take charge of their retirement planning without breaking the bank.
However, while more affordable services are becoming available, it's crucial to be cautious when seeking financial advice, especially when it comes from unverified sources.
Research has shown that a growing number of Australians are turning to social media for financial advice, which can often be misleading or even harmful.
As more people navigate the complex world of retirement and superannuation planning, it's important to ensure that the advice you trust comes from credible professionals.
What are your thoughts on this new legislation? How do you think this will help you personally? Share your opinions and insights in the comments below.
The good news is that accessing expert financial advice has become more affordable and accessible than ever before.
Thanks to new legislation, Australians can now tap into financial advice from their super funds for less than $100, a move that could revolutionise the way we plan for our golden years.
The Albanese government has introduced reforms that allow super funds to provide limited advice and financial education to their members.
This initiative is part of a broader effort to close the ‘advice gap’ that has emerged due to a critical shortage of financial advisers in the country.
The shortage was worsened by the banking royal commission in 2019, which led to increased regulations and costs for financial advisers, causing many to leave the industry and the remaining ones to raise their fees.
Thanks to new legislation, Australians can now access financial advice from their super funds for under $100. Credit: Shutterstock
For everyday Australians, the cost of financial advice has often been a barrier to seeking help.
Research indicates that while there is a desire for financial guidance, the willingness to pay the high fees associated with traditional financial advice is low.
This is where super funds are stepping in to fill the void with affordable and accessible options.
Super funds like Colonial First State (CFS) and HostPlus are leading the charge by developing digital tools that offer free or low-cost advice.
These tools are designed to help members make informed financial plans for retirement, providing a self-guided path to understanding how much they need to save for a comfortable future.
For example, CFS members can use their tool unlimited times over a 12-month period for an $88 fee deducted from their super account.
CFS CEO Kelly Power highlighted that while many consumers understand the importance of actively managing their superannuation for wealth growth, confusion around investment performance is hindering their ability to make informed decisions.
‘As an industry, we need to do more to demystify super and drive engagement so that more Australians feel confident making decisions about their financial future,’ she said.
HostPlus has introduced SuperSmart, an education-led digital tool that is free for all members.
It aims to help members prepare for better retirement outcomes by providing them with the necessary knowledge and resources.
UniSuper has established a strong presence in financial advice, offering a national team of professionals, a finance advice centre, and automated, age-targeted journeys with educational content for retirement preparation.
As five million Australians near retirement, the demand for affordable financial advice is growing.
Research indicates that while many are interested in financial advice, most are reluctant to pay the high fees of around $3,960 annually, which have risen by 58 per cent over the past five years due to inflation and rising interest rates
Investment Trends research reveals that nearly four million Australians are open to low-cost digital advice, with those without financial advice willing to spend an average of $570.
Most consumers seek assistance with investment strategies, longevity risks, and growing their superannuation.
Meanwhile, financial advisers are frustrated by the rising annual levy required by the Australian Securities and Investments Commission and other fees necessary to maintain their licenses.
As Australians look for more affordable ways to access superannuation advice, one solution comes in the form of budget-friendly consultations that cost less than $100.
This shift towards accessible financial guidance is being welcomed by many, particularly seniors, as a way to take charge of their retirement planning without breaking the bank.
However, while more affordable services are becoming available, it's crucial to be cautious when seeking financial advice, especially when it comes from unverified sources.
Research has shown that a growing number of Australians are turning to social media for financial advice, which can often be misleading or even harmful.
As more people navigate the complex world of retirement and superannuation planning, it's important to ensure that the advice you trust comes from credible professionals.
.png){kind=icon}
