Super Advice
Personalised advice at an individual account level is rare for the super industry. Most product providers operate more like call centres dispensing general advice and answering questions rather than providing members with personalised financial advice around product, contributions, and investment, and this often means that members see their retirement savings underperform by 20% or more.
Super Choices
The choices you make around your super fund, contributions, and investment strategies are paramount if you are hoping to maximise your retirement balance and enjoy more financial freedom in your retirement. It’s hard to find good, comprehensive information on super funds to properly compare them however, and it’s equally difficult to formulate goals around yoursuper and properly track its performance to ensure that your super choice is still the right one for you.
Common Mistakes
There are a number of common mistakes that cost most people more than they realise:
- Not setting medium and long term goals for your super.
- Multiple accounts.
- Multiple insurance policies.
- Not reading your annual statement.
- Not examining the performance of your main asset against other options.
- Not talking to someone who delivers affordable advice.
Personal Scaled Advice
Where product providers do deliver service at individual level, they tend to target prospects for their financial planning operations, a much higher margin service than personal scaled advice.
Personal scaled advice means an authorised representative will examine just your super and provide advice. Product providers would see such a service as high on cost and low on margin. Not their preferred commercial strategy.
Where you have a database of popular products detailing aspects of their cost structure and also their potential to outperform other like products, it becomes mathematically possible to analyse what your super will become over time and therefore what your projected income in retirement might be if you make some informed decisions.
SuperWiser does all of that for you, from initial analysis through to implementation of all recommendations made. Considering the complexities around super, this is no mean feat.
Consolidation
SuperWiser directs you to open a MyGov account which can then be linked to your super. This means you will see any lost super you have and you will be able to consolidate your super into the product recommended by SuperWiser. Without the help of SuperWiser, you would be aiming blind in terms of what product is right for you.
Most people are beginning to realise the value presented by MyGov, partly through the recent release of super allowed as a consequence of the current pandemic.
Monitoring Super Progress
SuperWiser enables medium term monitoring of super by informing you at what age you should achieve your next uplift in value of the next hundred thousand dollars. Super is not a park and forget asset at any time. Super should be monitored and reviewed as frequently as once a year with someone that has expertise in the industry.
This is known as active servicing, with SuperWiser able to service a bulk individual market at a remarkably affordable price of $220 (inc GST) for implementation.
Get Started
Start by completing a free Super Review. If you have questions call 1800 467 467.
Nothing As Complicated As Super?
Good things are rarely said about super, and that often discourages people from making informed decisions. But consider the following:
- Super is your wealth creation program for life after work.
- Remaining inactive around your super could cost you close to $100,000 down the track.
- There are affordable options available to make sure you don’t miss out and regret being inactive around your super.
For some, sorting out your super can be awkward. Others may base their choices on the annually reported investment returns from the products in the market – unfortunately these don’t tell the full story and aren’t always the ideal way to choose a fund.
Seeing The Difference In Super
As a straightforward statement of fact, there are as many fraudsters in this world as there are honest people selling a service. It is often hard to see the difference.
That’s why we’ve developed SuperWiser.
Super is one of the most regulated industries in Australia and the bar is set high. SuperWiser was developed by Super Simpler Pty Ltd which operates under an Australian Financial Services License (AFSL), No. 233680, held by AXIS Financial Group Pty Ltd. As an obligation under said license, AXIS Financial Group Pty Ltd must have what is called an Approved Product List (APL), detailing what financial products their authorised representatives are allowed to provide to market.
SuperWiser’s Approved Product List
SuperWiser has as its core an actuarial algorithm which examines which product will deliver better value for each and every individual. The actuarial algorithm uses the underlying analysis of approved product as the basis of this calculation.
Broadly speaking, SuperWiser’s approved product list examines the available product from a number of perspectives:
- Is the product actually approved for recommendation?
- If approved for recommendation, what are the comparable qualities between simply remaining in the product default against better advice in considering an individual’s circumstances and the quality of the investment choice menu?
- Based upon the analysis of the product default versus a personalised investment strategy, each option is awarded a points score which determines an outperformance target of between 0% and up to 0.6%.
SuperWiser’s approved product list is scrutinised every 6 months from the point of view of the appropriateness of the advice. Changes are exacted as appropriate to the data.
Information Available
SuperWiser website will give you a summary analysis of the super product you are currently using. This will advise you if your product is approved and some information to tell you whether or not you can do better.
You can complete a free Super Review and this will inform you if SuperWiser believes it can help you make a lot more of your super from a financial value point of view. In doing the calculation, SuperWiser is examining costs, contributions and also what investment strategy you might be in.
If you are interested in finding out more and under the obligations as defined in the above Australian Financial Services License, the first step has to be to confirm the original calculation so SuperWiser knows a significant improvement in super outcomes can be delivered.
So you do have to register and provide the correct details for your super and allow SuperWiser to contact your product provider to confirm the accurate information involved. This process involves what is known as an Authority to Access Information. Certified proof of identity is also required to complete this step.
SuperWiser then updates the calculation and either says proceed as the benefit is confirmed or SuperWiser advises you not to proceed as the original value as estimated cannot be delivered.
The Decision To Buy
There is some final information required just to ensure SuperWiser has all the accurate facts to help you achieve your stated goals and objectives, defined as age of retirement and also your desired projected income in retirement. Still at this point everything is done for free.
SuperWiser will now state why a higher projected income in retirement can be delivered compared to your current super, based upon an analysis of cost, investment returns and also contributions. It is at this point you decide whether or not you believe the promised result. So far there is no cost. Implementing the advice you receive can be done by us for a very affordable $220 (inc GST).
A New & Affordable Service
SuperWiser offers personal scaled advice just about your super. It is not about selling products but about explaining to you how to optimise your super.
If you pay sensible attention to your key assets, it is amazing how they may exceed your expectations. SuperWiser can help you to assess your super and monitor it going forward.
Start your free Super Review now. It always pays to keep an eye on your super.
In The Blink Of An Eye
Retirement is never a long way off and you will all be there before you know it. The introduction of compulsory super is one of the better government initiatives of the last 70 years and so it’s well worth it to pay attention to it and think about what you are, or aren’t doing, to optimise your retirement savings.
When Should I Start Paying Attention?
The simple answer is NOW. Whether you’re 25, 40 or 55, you can benefit from paying attention to your super. Whilst you can’t change the past, you can get on course to a better future.
Super is intended to be your income when you no longer work and the level of that income will be determined by how well you managed your wealth creation strategies during your career, in particular your super.
Many people are complacent about super, viewing it as a bit of annoyance. Arguably, the younger you are, the less engaged in super you are likely to be – retirement seems like a long way away after all! But you will undoubtedly reap the benefits in later life if you optimise your super from early on in your career.
SuperWiser can help you to maximise the potential of your super. The right choice of product and investment strategy can help you live a more comfortable retirement.
Preservation, Choices And Destiny
Generally, your super is not accessible until you are old enough. The government has made an unprecedented exception recently as a consequence of the coronavirus pandemic. Australian’s can access up to $10,000 for the 2019-20 and 2020-21 financial years however there are a number of conditions that they must meet to qualify for a withdrawal.
In most cases, super is preserved until you reach your preservation age of 60 (those born prior to 1st July 1964 can access their super a little earlier – consult your financial adviser to find out your preservation age). At 60, you can access your super if you’ve retired from work. At the age 65, you can access your retirement savings and benefits whilst continuing to work if you choose to.
Those who have managed their super well over the long term may find that they have the option to retire at the age of 60. It’s also possible to access super between the ages of 60 to 64 through a transition to retirement arrangement which would allow you to go part time.
Taking responsibility for your super and making informed choices now allows you to take your destiny and your future into your own hands. Making the right choices now could mean an earlier and more comfortable retirement down the road.
Super And Health Problems
Whilst most of us will live to enjoy our retirement, some of us will face challenges to our health before we make it there – this is why many consider personal insurance. Super should be balanced between your savings strategy and personal needs and circumstances. Your attention to super now could be a lifeline to you and your family in the future should your health deteriorate resulting in death or total and permanent disability.
In the event of death, everyone should have the comfort of a binding nomination of beneficiary attached to their account. Statistics indicate that many people do not have a beneficiary nominated, a problem which slows down the payment of your super assets to your loved ones.
In the event of total and permanent disablement, the claims process can be lengthy and everyone in that situation needs someone who understands the terms and conditions of policy on their side representing their claim to the insurer and subsequently to the trustee – getting good financial advice can make a huge difference to both your savings and your peace of mind.
Time To Get Organised
By spending just a small amount of time each year on your super, you can expect to dramatically improve your retirement outcomes. Complete a free Super Review today, it takes less time than you spent reading this article and can help get you on track to a better retirement.
Everyone Has An Opinion
Super in Australia is a huge asset for the nation, our system is the envy of the world. Unfortunately that also means super gets lots of attention from the government, regulators, banks, unions and the financial services industry as a whole.
Those who shout the loudest about an issue or topic will have their own specific agenda, and often their interests won’t necessarily line up with yours. If anything, the last individuals to be considered by all the parties involved in legislating, regulating and servicing super are you, the individuals who own the asset!
In many cases this has led to the market messaging around super being biased, it often misinforms rather than educates the public about the asset that they own and leads to the wrong guidance on making super decisions.
The Super Situation
The Australian super market has been dominated for far too long by organisations that focus on products, rather than personal service. Making good super decisions is rather complicated and requires a lot of product knowledge. Getting the most out of super requires a level of expertise that most people don’t have, but product providers are reluctant to help!
The most common-place marketing campaign for the super industry involves super providers telling customers how much they care, or promoting low costs and/or higher returns without any transparency about what that really means, this makes the decision making process complicated.
Whilst there are huge variations in product functionality, there is very little variation in most product provider’s intent to deliver a quality service on a personal level.
What’s Wrong With Super?
Put simply the biggest problem with super is:
The government and regulator have repeatedly tried to resolve an apparent problem with super, but the issues have never accurately identified and still exist.
There are far too many third-parties with a vested interest in promoting only themselves.
The idea that the only investment strategy that is available is the “trustee approved MySuper investment default”.
The level of undisclosed costs and related party transactions within a product.
Misinformation by the media where they reinforce the idea that the only way to make a decision is to evaluate the differences in product by looking at the annual disclosure of best investment returns and then the “dud funds”.
The lack of attention paid to investment risk and valuation methodologies when promoting annual investment performance.
Some product providers actually lack scale from an investment management point of view.
It appears that regulatory pressures are depressing all product providers into the same standard model which is based upon a minimum of personal service at an individual account level.
What To Do About YOUR Super?
Well first things first, it is always important to investigate and try to improve your super.
Super decisions are often left for over a decade as you start with very little and then over a decade later you realise you actually have accumulated more than you imagined. So start now and look for a source of information that provides perspective around how you are currently organised.
You may be someone with multiple accounts but then you are uncertain in making a decision about which account to consolidate everything into. Most advisers are product biased and you have to make sure your source of information is technically competent and will not hesitate to recommend whatever choice might be right for you.
You might feel somewhat uneducated about your super. Information provides the education you might feel you lack now. Such information must be mathematically based and must consider a wide array of product choices you could make.
You must be able to browse before you have to buy. Whatever the source, you would never buy blind but maybe that’s why super is such a confusing area to navigate. You need some information early and maybe a bit more and more to be convinced that you are being guided in your best interests.
So Where To Begin?
Let SuperWiser do the hard work for you. It can evaluate your current super fund and compare it against other well-known funds to find the optimal product, contribution and investment strategy for you. It can also help you to establish clear goals so you can easily monitor the performance of your fund.
Start your free Super Review now.