A new joint report by KPMG and Challenger titled Guiding members safely down a path in retirement said key issue faced by superannuation funds is a lack of clarity about who is responsible for delivering retirement income to members.
While the chief investment officer plays a critical role in the accumulation phase, responsibility for delivering member benefits “can get lost in the cracks between, product, member engagement and investments”, said the report.
“A new role, the chief retirement income officer (CRIO) could expedite implementation by taking charge of this important function in the one place,” the report said.
“Equipping this new CRIO with the right tools – internal and/or external – could provide tangible value to members, leading to better retention through retirement.”
The two companies said messages from funds to their members also needed to shift in focus to maintain engagement, saying that while “campaigns that focus on the inadequacy of retirement savings capture the attention of members ”, they also undermine confidence in the superannuation system.
“Funds have a pressing need to develop solutions that integrate engagement, advice and product to meet members’ needs as they navigate through their whole life,” they said.
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