The superannuation industry is in the rare position of being mandated to grow. It doesn’t have to compete, it doesn’t have to satisfy members, its simply needs to exist.
The compulsory 9.5% Superannuation Guarantee contribution has powered the industry grow to more than $2.1 trillion in funds under management, which has created an industry which has been very focused not on service but on product and operations.
But this world has changed, more and more people are making a choice about their super, and as funds begin to focus on member retirement strategies, they are beginning to realise that product is not enough.
The latest CoreData Retirement Ready Research, in which we sampled more than 700 pre- and post-retirees, we found communication and services are just as important as product to improving the relevance of super.
The new world of super choice is forcing a fundamental change in the industry, a shift from being product providers to service providers, from a transactional to a relationship-building approach.