Can I get quality servicing for my super?
Based upon any examination of super as a personal asset, it is a well-publicised fact about the financial services industry that quality servicing does not exist at an individual super account level. Product providers within the financial services industry all argue that they deliver an optimised value to their client base. Notably, their servicing is based on a product-based model with a one size fits all approach as far as their promise to deliver high value at an individual account level. Their promises to deliver value are at a population level and most certainly not centred on personal touch at account level.
If you are in a corporate super plan with a corporate adviser attached, it is likely they are a financial planner looking for leads and not set up to service all plan members. If you are in a personal product as advised by a financial planner, you may be getting serviced but you may not know how this compares with other service options. There is however, an alternative servicing model.
Super Service Models
Much of what we do at SuperWiser involves our market knowledge about which service model your super product fits into.
There are distinct differences between service models and each product’s approach in optimising your super balance, and consequently your projected income in retirement. Not all products provide the same value, and consideration must be given to each product’s capability and intention in optimising your individual super asset.
There are variations between service models and products. When considering your own situation, ask yourself the following questions:
- Which product might deliver optimised projected income in retirement?
- Are my fees high based on product disclosure rate?
- What is the functionality of the product and how can it optimise my super?
- What is the asset management capability of each product provider?
- What are the service touch points for my account?
- Am I getting personalised service and good advice?
I doubt you have heard of the phrase “active servicing” before reading this publication. It’s not a phrase you would associate with the financial services industry. On the other hand, almost every other industry has their service standards, often because of high levels of competition for your business.
All super products have a one size fits all approach to optimising your super. So, during your working life when you are accumulating your super, every product in the market delivers an average level of service as distinct from a superior service at individual account level. Whether you are 25 or 55 years old and irrespective of your circumstances, every product delivers a bulk standard solution to most of their individual clients. Most products only become interested in an individual account when the balance is high enough that they can sell high priced financial planning services to you. This model is unsustainable in the medium term as evidence will be presented to prove that paying higher fees to a financial planner actually does not deliver greater value.
The benefit from active servicing involves the individual knowing exactly what decision they should make based on their circumstances at any point in their career. The strategic options to be considered around your super are not that complicated:
- Insurance premiums
- Level of insurance cover
- Your contribution strategy
- Your investment strategy
- Your nomination of beneficiary
These factors work together to build your wealth, optimise your super, and ultimately your projected income in retirement.
The SuperWiser Framework
SuperWiser is a new digital service interface developed by Super Simpler Pty Ltd. SuperWiser has a database of about 50 different products comparing which product could be better for you as an individual and how to best utilise that product. SuperWiser helps you to establish your super goals and objectives at an individual account level and then helps you get there. SuperWiser has been developed to deliver personal advice directly to you the individual for an affordable one-off fee of $220 for service. This covers product, contribution, and investment advice, as well as implementation of the advice.
SuperWiser initially gives you the opportunity to examine your current super and how it compares against other well-known super funds. SuperWiser provides you with a quick indicative comparison between what you are currently doing with your super and what you should be doing with your super. Assuming that stirs your curiosity, you proceed to a more tailored calculation which confirms that you can indeed do better. And better still, none of this information costs you anything.
You are then given an analysis of the impact different factors such as salary sacrifice, fees etc. can make. Again, you’ll receive all this information before you commit to pay. Once you decide to proceed, the one-off fee of $220 includes product advice, contribution strategy, investment strategy, and then a step by step implementation process.
Super Fact Sheets
There is a new addition to the SuperWiser website. There are individual Facts Sheets for about fifty well-known super products. These Super Fact Sheets summarise whether or not a product meets our exacting demands in evaluating products approved or indeed not approved. Fact Sheets will also give you a list of positives and negatives involved in our assessment process.
So, to answer the question ‘Can I get quality servicing for my super?’ I’d say yes. Why not try it for yourself? Receive your free SuperWiser evaluation today.
Harry Burke – Superannuation Specialist
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.