Is effective member engagement an art or a science?

AMY BRADDON from SUPERFUNDS magazine explores the power of connecting with members through experience, entertainment and gamification.

So, we're hiring to expand our team! We are looking for people that are passionate about helping ordinary Australians make better decisions and take action to improve their financial circumstances.  

In a release made on 17 March 2017, AIA Australia, Australia's largest group life insurer announced their partnership with SuperEd. Read an excerpt from the release.

As a fund you want to deliver a personalised advice journey. SuperEd can help you achieve this vision: an individual journey for each member. Watch our video to learn more.

Adapted from Jeremy Duffield’s speech at ASFA 2015

Apollo 11 astronaut Buzz Aldrin, speaking at ASFA 2015, talked about mankind’s push to get to Mars as our next great space challenge.  Buzz claimed “Our future is in space.”  Well, the super industry may have its feet more fixed on the ground, but we have great challenges and opportunities, too.  To paraphrase Buzz, I reckon: “Our future is in advice.”  

Do your members have the tools and advice they need to make the right decisions to optimise their retirement income?

The Australian super system makes the individual responsible for their own retirement success. But the average person doesn’t know what are the right decisions or which actions they should take - they need financial  advice.

The mandatory nature of Australia’s super system means that most people are responsible for making important financial decisions about their retirement. But how well equipped is the average Australian to make decisions about super and retirement planning? Research into the financial literacy of Australians, suggests that most are not well equipped at all and that financial literacy is key to successful retirement planning.

When super was first introduced, there was little choice and less personalisation. Engagement with super was extremely low and only wealthy people had personalised financial strategies, prepared for them by their financial planner.

Fast forward about 25 years. Engagement has lifted (although there is still work to be done) and more people than ever are choosing their super fund. At the same time the benefits of personalisation are being recognised.

Why? Everyone is different

Is there a typical member? Even if two people are in the same industry, with a similar income they won’t have the same investment goals. The personal financial situations will be different, so it makes sense to personalise their super investment.

To fulfil the promise of superannuation, super funds must now shift their focus from the accumulation of super to the decumulation phase.  To do this successfully, funds certainly need product, service and advice solutions, but they also need to shift the thinking of their members. We need to get people thinking in terms of retirement income.

We recently held focus groups to talk planning and income in retirement. Across the board, people are sceptical - looking for answers and advice they can trust and wary of changing legislation and market downturns. 

Here we share the key themes which emerged – not surprisingly around adequacy and trust.

Projection tools can really help to engage members and build an understanding of how their actions can impact their super savings. 

But are your tools giving members the right answers?

Deloitte report ‘Dynamics of the Australian superannuation system – The next 20 years: 2013-2033’ highlights that if you're 30 today (with 35 years of super to come) you won't enjoy a comfortable retirement unless you add an extra 5% each year.

The Australian superannuation industry eagerly awaits details of the new Liberal government's direction on super policy. After a marathon effort by the previous Labor Government to rewrite the rules governing default super and an equally ambitious game-plan to transform compensation for financial advice, the default industry mood in recent years is one of exhausted resignation.