Accessing advice through super ‘can make a huge difference’: ASFA

The Association of Superannuation Funds of Australia (ASFA) has encouraged superannuation account holders to kick off the new year with a “check-up” of their retirement savings, including seeking financial advice.

“Investing as little as one hour to make sure you’re on track to achieve your desired standard of living in retirement will reap dividends in the years ahead,” ASFA chief executive Mary Delahunty said.

“This can be as simple as going over your latest statement, thinking about your risk appetite and whether it aligns with your current investment option(s), and considering seeking financial advice from an expert.”

ASFA has pushed the value of accessing “quality, affordable advice” through a super fund.

“Most super funds provide general advice or limited financial advice at no, or only a small cost on topics such as insurance cover, investment options or whether to make additional contributions. Funds also generally have calculators that can assist members with planning for retirement,” it said.

“Most funds also make available full personal financial advice to members, but this comes at an additional charge.”

Following Financial Services Minister Stephen Jones’ announcement of more details on the new class of advisers (NCA), ASFA was quick to support the restriction of NCAs to providing advice on prudentially regulated products, as well as the exclusion of certain high-risk products, ensuring that consumer protections are a “core pillar” of expanding Australia’s access to financial advice.

“ASFA is pleased to see that creation of the new class of advisers is accompanied by strong regulations and consumer protections to ensure high standards are maintained, alongside the increased provision of high-quality financial advice,” Delahunty said at the time.

“These reforms are a clear signal of the government’s commitment to delivering better outcomes for Australians by addressing barriers to affordable financial advice.”

Delahunty added that members should also take note of their current position and understand what they need for retirement.

“The ASFA Retirement Standard is a great tool for this and has just notched up 20 years of capturing the costs of essentials like health, communications, clothing and household goods,” Delahunty said.

Additional check-up steps that members should look at include updating their details, regularly monitoring their account, and considering maximising their super contributions.

Double-digit returns for 2024

The push follows Australia’s super funds largely showing strong returns for members in 2024, with ASFA noting that there were double-digit investment returns across much of the sector for both balanced and growth superannuation investment options

ASFA analysis undertaken of daily unit prices of major super funds for balanced superannuation fund options shows a typical return of at least 10.5 per cent for 2024, with some funds recording nearly 12 per cent returns.

On the high-growth front, some funds have reported annual returns as high as 15 per cent.

“These returns for 2024 are a great result for working Australians who stand to enjoy a higher standard of retirement living thanks to our world-class superannuation system,” Delahunty said.

“While strong international share markets have helped propel returns over the last 12 months, it’s the consistent, sophisticated portfolio construction from superannuation funds’ expert investment teams that deliver terrific long-term results regardless of what is happening on the markets.”

She also noted that 10-year returns for balanced options is typically above 7 per cent, outstripping returns after tax from term deposits, and “well ahead of inflation”.

“This is what our superannuation system is all about – delivering great results, year after year, to help Australians have the retirement they deserve,” Delahunty said.

“There can be a lot of noise around super, but this – the consistent delivery of strong, long-term returns, is what matters to Australians.”