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.