Last week’s Fund Executives Association Limited (FEAL) conference in Melbourne featured a panel of high-profile women talking about the inadequacy of women’s super caused by shorter working lives, lower income jobs and a focus on using the husband/partner as a superannuation asset.
Former parliamentarian and Australian Institute of Superannuation Trustees president Susan Ryan said a husband was not a superannuation asset. Ms Ryan, I beg to differ. For many Australians, a husband is as good a superannuation asset as a wife is a tax deduction. It is even more the case now that superannuation is eligible for splitting in divorce.
However, the point was that women should look at their own superannuation contributions and super funds should specifically market to women to try and equalise superannuation balances between the sexes. The FEAL conference also had fund executives talking about the provision of advice for their members. For industry funds, the issues were the same as for retail fund managers and advisers. Could the fees be taken out of account balances? To supply service to entire membership, could other advice models be used, such as telephone advice and single issue statements of advice?
They agreed it’s important all members understand super and the fund has responsibility to ensure they are aware of the opportunities of super advice and financial education. The importance of issuing benefit projections on fund statements and employment bonus payments was also discussed. While industry and retail funds are stuck on the advice model, when it comes to servicing clients, we’re all very much on the same page.
