According to IOOF, advisers looking for sustainable business growth shouldn’t overlook workplace super funds as they can be an effective way of creating long-term revenue streams.
IOOF Head of Employer Super, Stephen Black, said research (see note 1) confirms IOOF’s experience that an increasing number of employees are actively asking their employer for professional financial advice on their super, highlighting the value advisers can bring to the financial wellbeing of both employers and employees.
“Financial stress is a major cause of disruption and loss of productivity at work, but access to financial advice can help combat this. Research shows that 72% of people who switch super funds seek advice before doing so, with 19% of those seeking that advice from their employer, and by extension, the financial adviser for that workplace super plan.
“And with over 2.1 million actively trading businesses in Australia, there is a great opportunity for advisers to work in this space if they have the right value proposition and support. IOOF has created a guide for advisers to outline a pathway to success as a workplace super adviser.”
Financial adviser Paul Mann, Managing Director of financial advisory firm Moneywise Global, said his partnership with a workplace super provider has allowed him to better service his clients, grow his client and referral base, and create a long-term revenue stream.
“The beauty of the right workplace super fund is that clients receive that advice as a staff benefit. Through my partnership with a workplace super provider, I can offer my clients individual financial advice and then recommend investment options which match their investment objectives and horizon.”
Mr Mann went on to say that workplace super funds differ widely, but there are a number of features advisers should consider when assessing which fund to partner with.
“For example, a good fund will have a number of ready-made portfolios with a variety of risk profiles, a large range of managed fund options, and the ability to invest directly in shares or term deposits, as well as a default-fund option. Transparent and competitive fees are also crucial, and insurance options are a great add-on,” Mr Mann said.
IOOF added that there is a growing gap in the market when it comes to superannuation options typically on offer.
“Financial advisers are telling us that there is a growing group of investors looking for something that offers the best of both – a range of quality managed funds, and the ability to tailor superannuation investments to suit their personal circumstances,” said Mr Black.
“The strength of a managed fund with the flexibility of individually tailored solutions can be a winning combination. Managed funds and SMSFs are well-understood, popular choices, and both have their pros and cons, depending on investors’ circumstances.”
Mr Black concluded by saying that IOOF sees workplace super as a win-win for advisers. “Being the adviser attached to a workplace super plan, you become the natural point of contact for all employees seeking advice on more than just their super needs, and when approaching new clients, offering workplace super advice will strengthen your value proposition.”
“At the same time, employers save time and money when it comes to the management of their superannuation obligations, while offering their staff a highly valued benefit – financial advice and a flexible super scheme,” he explained.
IOOF has worked closely with their adviser partners to ensure that their offering, IOOF Employer Super, is flexible, and offers investment options which allow advisers to create genuinely tailored solutions.
Notes:
1]Roy Morgan Research (‘Discover your edge’)
