ASFA Conference 2023 – a focus on improving member experiences

We recently attended the Association of Superannuation Funds of Australia (ASFA) conference in Melbourne. It’s one of the largest gatherings of its type, attended by delegates from all over the world, and it was great to see so many familiar faces.

This is an exciting time of change for the ‘superannuation’ (the Australian equivalent of a pension) industry, not least because the retirement savings system there is reaching maturity, with 40% of assets held by those aged 55+. There were plenty of hot topics at the conference, including the progression of the Quality of Advice (QoA) review that evaluates financial advice to ensure it meets regulatory standards and protects consumers.

‍The impact for superannuation funds

Discussions at the event were positive and progressive, and the most encouraging thing was how consistently member-focused they were. A common theme was how much of an opportunity the QoA review represents. When it comes into effect, it will sit alongside the Retirement Income Covenant, which hands superannuation funds a responsibility to innovate. This will create a powerful combination that can help drive better outcomes for members.

Eliminating the formal Statement of Advice (SoA) which is currently required under Australian law is another way to a more streamlined and relevant experience for members. Many in the industry support this approach and discussed their desire to reduce unnecessary paperwork and red tape. The volume of (often complicated) paperwork involved in financial planning for retirement sometimes proves to be more of a hindrance than a help to scheme members. As an industry, we should be doing all we can to make it easy for them to make more confident decisions.

Technology leads the way

In the UK, we’ve seen similar steps to simplify information and processes for members. For example, the annual pension statement has been reduced to a few pages, is written in plain English and shows information that is relevant and useful to the member rather than a dense mirror image of the regulations. In contrast, if you live in the Netherlands, your annual statement can reach more than thirty pages, which makes it difficult for a member to access key information. Let’s keep focusing on members at every turn.

The future

From a digital perspective, the QoA review is very encouraging because it will help technology-powered propositions level up and solve some of the guidance and advice issues that we see in many pension marketplaces internationally.

Helping address the advice gap, which is prevalent in many parts of the world, would be a great place to start.