The government has just announced the passes and fails amongst the multitude of MySuper investment options. It is a fact that the government is still trying to fix super after almost thirty years of regulation and then more regulation. So, what’s so different about this time? 

Well one would have to say that the current approach by the government in promoting the MySuper model in controlling the performance of your super is a step beyond their role as the legislator and regulator of what is legal and what is a crime? It appears to be a statement that Australians are unable to optimise their super asset in developing it as a future income in retirement. Is MySuper the long term solution to managing an asset that is currently at $3 trillion and growing fast?

Is the MySuper investment default model the best option for your asset and is the dependency on measuring performance based on current costs and historical returns the best way to determine the future value of your asset?

Are our politicians tremendous commercial managers in shaping a much improved financial services industry?  Are cost and historical investment returns a reliable basis to indicate what needs to be a future and sustainable performance? Is the government in a position to provide an explanation on why a historical investment performance is a statement of current capability in terms of asset management?  Is any MySuper investment default at all transparent in how the asset is invested and what are the long term risks involved in various asset classes and geographies?  Does any individual even examine the asset allocation of MySuper and consider the variation in geographical allocation across different platforms?

The lack of explanation, justification and therefore transparency around MySuper as a superior investment strategy is surely apparent to everyone. Or is it?

My SuperWiser

Having been instrumental in developing SuperWiser to its current state of readiness (so after nearly 7 years in development), I do not expect SuperWiser will ever recommend you to optimise your super by investing in a MySuper investment option. SuperWiser has a number of underlying advantages which make the application superior to other personal service models:

  • It is an online application and thereby available 24/7
  • SuperWiser works by way of an algorithm developed by an external actuary
  • SuperWiser has a backend, known as Module Manager containing details of some 40 products and all the details to enable a mathematical comparison depending upon your circumstances
  • Independently of SuperWiser, the license holder, AXIS Financial Group Pty Ltd, AFSL 233680, carries out an in depth assessment of every product within SuperWiser’s module manager around product capability, based upon optimising super as a projected income in retirement
  • SuperWiser does not need anyone else’s permission to service you as it is your decision to participate or not
  • Should you need some help in progressing within SuperWiser, there are a number of access points available if you need an adviser intervention
  • SuperWiser provides ongoing advice within a service model designed to encourage or remind you to pay attention to your super at critical points in time
  • As SuperWiser is an online application with all the benefits of technology, the application offers a solution to everyone at a very affordable cost: full personal advice around your super for $220 inclusive of GST

SuperWiser works for you

There is no product involvement or influence with SuperWiser and the sole intention is in offering a digital service interface to all individuals in need of super advice.  However there are features that are very supportive and applicable to all and then there are individuals who have much more specific requirements.

SuperWiser as it is designed does not do pre-retirement planning and does not compare pension products as yet.  SuperWiser’s current focus is on the biggest proportion of employees who are accumulating their super assets as opposed to employees planning their imminent retirement.

As you progress through the application, SuperWiser will illustrate and further tailor a comparison between your current strategy and what you could do for yourself, described as your proposed strategy. Your proposed strategy might require a change in product and, as a minimum, will require a change in how you use the features available within your product.

SuperWiser finalises a personalised comparison between your current and proposed strategy before you have to actually pay anything. If you want to see the detail of your new proposed strategy, you need to pay a once-off fee. Implementing the proposed strategy is included in this fee.

After payment, you do have the opportunity to modify your strategy before you confirm what you are going to do.  In particular, SuperWiser does not just give you a singular product recommendation should you be advised to move to another product.  Indeed, SuperWiser informs you around the top three products and the comparable projected income in retirement for each product.  As this is a projection, common sense prevails where the variation in projected income in retirement between products is, say, minimum. 

In effect, you will find yourself making a very informed decision.

When would SuperWiser be appropriate for me?

SuperWiser is most certainly worth a look for anyone who has been employed for say around 5 years and the application will guide you around what is in it for you and you are able to easily consider if the value of the advice is far in excess of the cost. 

Traditionally, it may have taken some 15 to 20 years for the older generation to accumulate $100,000 in super but nowadays, with the current level of super contribution and increases in wages from the early 1990’s through till now, that period of time should be at most about 10 years.  Should you now be in full time employment for 10 years but still well short of $100,000, there may well be a reason.  Maybe you participated in withdrawing super during the pandemic? 

SuperWiser is positioned to make you think about your super and how important it will be to you.  Life passes very quickly as some people already know and it is good advice to plan your super as early as possible as distinct from ignoring super as a serious wealth creation exercise for the first 20 years of your career.

Good advice

Try our play tool today to gain perspective around the possibilities and give timely consideration to a serious part of your financial package as funded by your employer.


This document was prepared and issued by Super Simpler Pty Ltd (ABN 74 150 240 421) a privately-owned company operating as a Corporate Authorised Representative (CAR No. 468 201) of AXIS Financial Group Pty Ltd (ABN 21 092 889 579, AFSL 233 680). The information contained within it is not advice. It provides general information only and does not take into account your individual objectives, financial situation or needs. You should assess whether the information is appropriate for you and consider talking with your financial adviser before making an investment decision. Information in this publication, which is taken from sources other than Super Simpler, is believed to be accurate. However, subject to any contrary provision in any applicable law, neither Super Simpler, nor its employees and directors, provide any warranty of accuracy or reliability in relation to such information or accepts any liability to any person who relies on it.

Super is interesting!

It seems like a laughable statement. Based on the number of individuals who don’t realise how important it is to understand how to manage their super, one would have to conclude super is the most boring topic in the world.

Is anyone really interested in changing their attitude to their own super?  What if your lack of interest in your super as a wealth creation strategy could lose you more than 20% of your potential income in retirement in today’s dollars?  Would that make you think you need to know more?

While lots of people have negative views about super and what it means to them, when all is said and done, your super will be a larger asset over time, so it’s worth taking an interest in it.  

The Typical Scenario

Speaking as an old guy, when I was at least 25 years away from retirement, I really didn’t pay much attention to how quickly I might find myself in my 60’s.  Believe me, time travels faster than your view of the horizon.  By all means, live for today but wisdom says always have one eye on tomorrow.

In accumulating super, it represents a serious part of your current remuneration, the only problem being you cannot spend it now.  That is in fact one of the advantages as everyone will want a certain lifestyle in retirement once they get there.

If you have 15 years or more until retirement, you could at least double your super and if you have more than 25 years, you should be aiming for an even higher multiple in terms of today’s dollars.

Where to from here?

There are a number of options presented as a valued service from the financial services industry.  The preferred service from the financial services industry is referred to as holistic advice.  This is an expensive option and is usually accessed by people who might have “more money than sense”?

Then there is another more affordable option that is not favoured by the financial services industry as it involves delivering a quality service to the masses, all of whom see holistic advice as way too expensive and even far too complicated for their needs.  As a generalised statement, the financial services industry sees service to a high volume of people as too high an overhead and far too low on margin to make it a profitable exercise from their point of view.

So welcome to SuperWiser!

SuperWiser’s basic premise

Financial planners target high balances and high income individuals as this means high fees and also high profit margins.  SuperWiser charges low fees and will provide dependable and limited advice to everyone else.

Effectively SuperWiser delivers high client value at a very low cost!

SuperWiser has a database of 40 popular products representing everything from employer super through to retail personal and also industry funds.  The back end of SuperWiser has an analysis of each product and its capability as dictated by fee structure, insurance cost, MySuper Default performance and then the capability of portfolio construction based on each product’s investment choice menu.

 In general, products deliver a registration system of individual account transactions and balances with most people sitting quietly invested in the MySuper Investment Default option.  No wealth creation strategy can be best managed by sitting in the same product with the same vague investment strategy for up to 45 years.

 Analysis proves that most employees are invested in the MySuper Investment Default for the majority of their working life and most employees don’t know where to access the information required to examine the quality of their product provider.

It’s truly simple!

When originally conceived, there was much debate in naming the application, the debate raging between SuperWiser and Simpler Super.  SuperWiser won.

 SuperWiser fills a void left by all product providers in terms of an employee’s capability to access personal advice limited to their super account. No one is trying to sell anything more than the one service and at no time will SuperWiser be an expensive service. Indeed SuperWiser’s process is enticing at first before it requires any commitment from you to directly engage with the application.

 The overall SuperWiser approach is straightforward: 

  •  You can start with the play tool without providing any contact details
  • You can repeat this function with different scenarios to see what the possibilities are for your projected income in retirement
  • If you want to know more, you register your email and create your account password
  • SuperWiser will then ask for the minimum of details to confirm your comparison between your projected income in retirement under your current strategy and what would be possible by using a more proactive method of managing your super asset
  • SuperWiser then asks for some final details in explaining to you where the benefit will come from if you adopt the proposed strategy
  • If you decide to proceed, this is where you will pay a fee to access details of what SuperWiser is recommending
  • SuperWiser provides you with three product choices to examine and choose
  • SuperWiser provides all the documentation required for your reference, so you understand the advice provided
  • SuperWiser also provides parameters that enable you to monitor your progress towards the stated goals & objectives as defined with the targeted projected income in retirement
  • SuperWiser provides all the assistance required for the implementation of your advice

 This is a lot of work for a base fee of $220.  You are then serviced by SuperWiser on an ongoing basis with updates being provided on a full fee for service basis, such as an update in terms of your investment strategy which is always dependent on a 12 to 24 month view of the market cycle.

 In terms of Products

The main service provided by super products is in fact the registration of your account balance and not the personal advice required to optimise your asset.  Other than the provision of a product, service activity is limited to answers to general questions and queries and no attempt is made by product to help you manage your super as a wealth creation strategy. 

Find out more

Go to superwiser.com.au and have a play.  FreeCall 1800 467 467 if you have some questions.

 This document was prepared and issued by Super Simpler Pty Ltd (ABN 74 150 240 421) a privately-owned company operating as a Corporate Authorised Representative (CAR No. 468 201) of AXIS Financial Group Pty Ltd (ABN 21 092 889 579, AFSL 233 680). The information contained within it is not advice. It provides general information only and does not take into account your individual objectives, financial situation or needs. You should assess whether the information is appropriate for you and consider talking with your financial adviser before making an investment decision. Information in this publication, which is taken from sources other than Super Simpler, is believed to be accurate. However, subject to any contrary provision in any applicable law, neither Super Simpler, nor its employees and directors, provide any warranty of accuracy or reliability in relation to such information or accepts any liability to any person who relies on it.

SuperWiser

Superman versus SuperWiser?

Superman versus SuperWiser – it’s a contest I’d like to see as I am confident SuperWiser will win.

Tools like SuperWiser are superheroes when it comes to managing your super. Decisions about your super are some of the most significant choices you can make – they impact on your future retirement savings and quality of life and so it helps to have a powerful ally like SuperWiser on your side. 

So, why is SuperWiser the solution to your super struggle?

Personal Scaled Advice

Government regulation has focused on product, as well as holistic financial advice which can be costly. Many individuals however don’t have many other assets that need managing, they just want advice on their super. The service required is known as personal scaled advice, or limited advice.

SuperWiser meets all regulatory requirements and focuses on the delivery of high value advice at an affordable cost. The app gathers details of your circumstances and then processes a combination of product comparisons to identify the right product for your contribution strategy and investment strategy, before providing you with a framework to monitor your progress towards your goals and objectives.

With SuperWiser, it’s possible for most individuals to improve the performance of their super asset by over 20% as reflected by their projected income in retirement.

How does SuperWiser win?

Credibility is a key consideration when making a decision that might improve your future financial situation. 

SuperWiser is owned by Super Simpler Pty Ltd, a company majorly owned by the directors of AXIS Financial Group Pty Ltd.  AXIS Financial Group has been a market leader in servicing employer super since the early days of its development and AXIS Financial Group provided market leading service statistics in employer super for many years.  No other advisory company penetrated as many workforces in delivering personal scaled advice to as many employees as AXIS did. 

SuperWiser has taken the AXIS service model and automated it with the intention of further increasing the levels of market penetration previously provided to employer super.  SuperWiser intends to do the servicing that should have been done by the product providers who have dominated the super market for so long.

The delivery of personal scaled advice is a space with few competitors as well organised as SuperWiser.  SuperWiser is designed to provide advice to members of any corporate plan, to any individual within a retail personal product, and everyone in an industry fund.  SuperWiser’s muscle is based on an algorithm that contains a database of product details which is used to calculate a better option for the individual depending upon personal circumstances.

Try our play tool

Try our play tool for a free evaluation and to see if you can improve the performance of your own super asset. SuperWiser will identify if there’s a better set up out there for you, and then implement the advice for the very affordable price of $220.

This document was prepared and issued by Super Simpler Pty Ltd (ABN 74 150 240 421) a privately-owned company operating as a Corporate Authorised Representative (CAR No. 468 201) of AXIS Financial Group Pty Ltd (ABN 21 092 889 579, AFSL 233 680). The information contained within it is not advice. It provides general information only and does not take into account your individual objectives, financial situation or needs. You should assess whether the information is appropriate for you and consider talking with your financial adviser before making an investment decision. Information in this publication, which is taken from sources other than Super Simpler, is believed to be accurate. However, subject to any contrary provision in any applicable law, neither Super Simpler, nor its employees and directors, provide any warranty of accuracy or reliability in relation to such information or accepts any liability to any person who relies on it.

The Traditional Service Model

One major failing of the financial services industry around super is the delivery of an individual service model targeting the optimisation of your balance at your point of retirement.  The financial services industry is broadly operating with a tarnished brand while the government tries to prove yet again that the latest regulatory examination of super is the solution to the problem.

The one obvious problem not being discussed involves a commercial examination of the difference between a sales model and then a service model.  The obvious problem with super is around what services are actually being delivered.  The value being delivered is very much dependent upon the quality of the servicing. 

Optional Commercial Models

As a consequence of the heavier penalties being inflicted across the financial services industry for any departure from regulation, the whole industry has become compliance focused, a distraction from explaining the value they bring to market through the delivery of service.  

The current approach from product providers delivers a highly important service but very little by way of personal advice required to manage your super as a personal asset. Their definition of servicing has never included the delivery of personal advice at an individual level to optimise your balance and therefore your projected income in retirement.

Super as a Personal Asset

A sales model defines how your supplier makes a profit from providing personal service.  A service model examines the same flow between supplier and client from the viewpoint of value delivered against the cost incurred.  From the day anyone commences work and requires a super account, best practice involves the management of the asset being created.  Super is a payment made by your employer intended to build an asset that replaces your income once you move on to life after work.  Like any other asset, super needs to be managed if it is to be optimised.

The intention of government is always hard to ascertain as political opinion changes from government to government depending on their underlying agenda. In the past, government has said that super is a “community and not a personal asset”. Government has also said that the purpose of super has never been defined and such an initiative is overdue for legislation. A strange statement given the fact that compulsory super was introduced in 1992! 

From an ownership point of view, there is no doubt that super is a personal wealth asset, in truth similar to anyone’s salary or wage. If you take an active interest in managing your super, there is also no doubt that you will accumulate a lot more than you can imagine.  On the other hand, if you ignore your super for too long, the cost can be equally more than you would imagine.

What do I do?

In managing any asset, the object of the game is the increase in its value over time.  In examining what to do, there are controlled decisions you can make and then there are market forces you can try to manage.  In other words there are elements you can control and then there are events you cannot predict.

Decisions You Can Make
Product Choice Contribution Strategy Investment Strategy Level Of Insurance
Goals & Objectives Which Can Be Set
Age of retirement Projected income in retirement Milestone 1 Milestone 2
Monitor the Performance of Your Asset
Against your milestones Compare your investment return Check your contributions Consider new product options

SuperWiser

SuperWiser provides assistance with product choice, the importance of optimising your contribution, recommendations on investment strategy including timely updates when required, and will also help with  your understanding of personal insurance.

The application is targeted to servicing employees accumulating super, even if you have not paid attention to it for some time.  SuperWiser has 40 well-known products already analysed within a database so you can examine decisions around your asset while SuperWiser considers the potential choices you could make.  You will find our service at www.superwiser.com.au 

 

This document was prepared and issued by Super Simpler Pty Ltd (ABN 74 150 240 421) a privately-owned company operating as a Corporate Authorised Representative (CAR No. 468 201) of AXIS Financial Group Pty Ltd (ABN 21 092 889 579, AFSL 233 680). The information contained within it is not advice. It provides general information only and does not take into account your individual objectives, financial situation or needs. You should assess whether the information is appropriate for you and consider talking with your financial adviser before making an investment decision. Information in this publication, which is taken from sources other than Super Simpler, is believed to be accurate. However, subject to any contrary provision in any applicable law, neither Super Simpler, nor its employees and directors, provide any warranty of accuracy or reliability in relation to such information or accepts any liability to any person who relies on it.