The Australian Retirement Trust (ART) has backed an idea to rebrand superannuation education as professional development by fostering a new kind of relationship between super funds and employers.
The idea was put forward at a virtual employer roundtable hosted by ART, during which a panel of professionals argued that super funds should offer direct support to employers, including the provision of financial planners, to host education sessions with employees.
Speaking to sister title ifa, ART’s Joshua van Gestel said: “As our roundtable event raised, employers are seeing the financial education and retirement preparedness of their employees as an important part of their duty of care and we see this as an important part of our partnership with them.
“Many superannuation funds offer education. However, we feel it is through partnering with employers directly that we best ensure [that] the education (and advice) is relevant, appropriate and well-targeted for their employees — complimenting broader initiatives and programs they may undertake,” Mr van Gestel said.
The panel agreed that the advice would take “a little bit of a broad-brush approach”, with those requiring further individualised advice required to make an appointment.
According to Mr Van Gestel, ART is already engaging in similar programs with businesses that use its services.
In its recent submission to the Quality of Advice Review (QAR) proposals paper, ART backed the idea that superannuation trustees, and the personal advice services they provide, should be given more flexibility.
“This is particularly important in considering the requirements of the Retirement Income Covenant and assisting members during the pre-retirement and retirement phase.”
Hence, ART said it supports the proposed removal of the s99F (collective charging arrangements) of the SIS Act because it “will make the identification of the scope of advice that can be provided much clearer”.
“Additionally, it will provide trustees with the ability to assist a consumer to implement the advice they have received and monitor that implementation, which is critical. Without the ability to monitor implementation under the current framework, Australian Retirement Trust’s experience is that some intra-fund advice today goes unimplemented, limiting the value of the advice”.
The ability to also consider adjacent areas of retirement planning “enhances the ability to provide relevant retirement planning advice,” ART concluded.
