Trust and simplicity are essential in every part of life. It should come as no surprise, then, that trust and simplicity are the most valued things between superannuation fund clients and advisers.
This is according to an August 2022 survey of the Australian Retirement Trust’s clients and advisers, which found superannuation funds build trust by establishing a reliable brand and performing strongly (84 per cent).
Other key factors found in the survey include low-cost fees and options (74 per cent) and ethicality (46 per cent). Forty-five per cent thought that profit-for-member funds are more likely to develop trust with advisers and clients.
Four out of five of ART’s advised members trust the superannuation fund, while three in five felt safe and secure. Two in five felt so safe and secure that they will not leave ART.
In a recent webinar hosted by AFA, ART national education manager Joshua van Gestel said “comprehensive financial advice also promotes fund loyalty and leads to improved retirement outcomes.”
“Advice should also lead to product and emotional outcomes. How clients feel is as important as the actual products,” he said.
“Trust can shift, however. The August survey was done before Optus and MediBank were hacked, so I would not be surprised if the statistics are now out-of-date.”
Financial advisers and industry funds have had an antagonistic relationship for a long time. It has softened in recent years, however, with super funds now working better with financial advisers.
Additionally, industry funds are now competing with Vanguard, which has just started in the sector after launching its much-awaited super fund.
On Thursday 1 December, Professional Planner will host Researcher Forum at Double Bay. The event will include a panel discussion on how researchers approach industry funds.
