9 in 10 Aussies want super funds to provide advice: Report

The Otivo Superannuation Report 2023, which surveyed 2,000 individuals across Australia and looked at what Australians want from their superannuation funds, said there is substantial demand from working Australians for more financial support from their super funds.

The research found 86 per cent of Australians want personal financial advice, and a further 90 per cent want super funds to provide advice on factors that affect their financial future, such as mortgage payments and overall cash flow.

The Otivo report found that 84 per cent of Australians trust their superfund; however, two-thirds (66 per cent) don’t know about their superannuation investments, while only a third (34 per cent) have done some form of research on what their super fund can offer them.

Seven out of 10 (72 per cent) of Aussies also said that superannuation funds should communicate more with their members.

Otivo chief executive Paul Feeney said: “We know Australians trust their super funds, so they’re perfectly positioned to provide scalable and affordable online advice to help more of their members.

“As every working Australian looks down the barrel of economically challenging times with rising interest rates and inflation, the Otivo Superannuation Report confirms that we need to be equipped with the ability to make informed decisions about savings, debt, mortgage and rental stresses, investments and retirement planning.”

Further, 78 per cent of respondents said they would like their super fund to give them advice about how much insurance cover they should have, as 42 per cent of Australians reported they don’t know how to change their insurance in their superannuation.

Otivo said that considering both its report and the Quality of Advice Review (QAR) final report delivered by Michelle Levy, digital financial advice and technologies should play a fundamental role in redefining the financial future of Australians.

Recommendation 6 in the QAR final report suggested superannuation funds should be welcomed as advice givers: “Superannuation fund trustees should be able to provide personal advice to their members about their interests in the fund, including when they are transitioning to retirement.”

Moreover, according to the QAR, superannuation fund trustees should have the power to decide how to charge members for personal advice they provide to members, and the restrictions on collective charging of fees should be removed.

“It is important to note I have not recommended that superannuation funds give advice on a broader range of topics than they do today,” Ms Levy said upon the final report’s release.

Ian Knox, chairman at Otivo, added: “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.

“Otivo’s Superannuation Report confirms that working Australians want more support, and they’re looking to superannuation funds for guidance. 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 online, cost-effective yet considers and supports those who give personal advice the most.”

Mr Knox further commented that legislative support from the government enabling super funds to have payment of advice fees deducted from the member’s account is a welcome step but noted that it’s essential the fees are minimal, cost-effective and not open to abuse.

QAR recommendation 7 states that superannuation trustees should be able to pay a fee from a member’s superannuation account to an adviser for personal advice provided to the member about the member’s interest in the fund on the direction of the member.

“The objective of this recommendation is to provide superannuation fund trustees with more certainty about paying advice fees agreed between a member and their financial adviser from the member’s superannuation account and ensure that adviser fees are not paid in breach of the SIS Act and are not taxable benefits for members,” Ms Levy previously said.