As financial advisers, we all want the best for our clients as they move into retirement.
The government’s latest consultation on superannuation retirement income solutions is meant to help retirees get better outcomes, more choice and clearer information. On the surface, that’s something we can all get behind.
As I read through the consultation paper, though, I couldn’t help but feel uneasy about one particular aspect: the idea that super funds should get more involved with members who already have a financial adviser.
The paper suggests that trustees should “engage with advised members” and include them in member engagement efforts, even when those members have a tailored retirement plan developed with their adviser. The intention might be to empower members with more information, but in practice this risks blurring the line between product provider and personal adviser.
As advisers, we know how important it is for clients to have one clear, trusted source of advice; someone who understands their full financial picture, their goals, their family situation and their risk tolerance.
If super funds start reaching out to our clients with nudges, product suggestions or even “targeted prompts” about their retirement income, it can create confusion. Clients might wonder whose advice to follow or, worse, receive conflicting guidance.
The consultation paper does acknowledge that advised members usually have more complex needs, but it still suggests that funds should be actively engaging these members. In my view, this sets a concerning precedent and risks undermining the adviser-client relationship that we work so hard to build.
At JBS Financial Strategists, we take our responsibility to our clients seriously. We don’t just set and forget a retirement plan. We’re constantly reviewing our clients’ portfolios, keeping up with legislative changes and making sure every recommendation is tailored to the individual. Our approach is proactive and personal.
We absolutely support super funds improving their products, being more transparent and making information accessible. That’s good for everyone. But there’s a big difference between providing clear product information and stepping into the advice space.
Super funds should stick to what they do best: offering robust, flexible products and clear, unbiased information. The personal advice – the real strategy – should remain the domain of professional advisers who know their clients inside and out. The best results for retirees come when everyone knows their role.
At JBS, we’ll keep doing what we do best: looking after our clients, giving honest and tailored advice, and making sure their retirement portfolios are set up for their lives – not just for the system. If our clients ever feel confused by mixed messages from their fund, we’re here to help them cut through the noise and focus on what matters most to them.
As advisers, we need to make our voices heard in this consultation. Let’s remind policymakers that the adviser-client relationship is built on trust, personalisation and a deep understanding of each client’s unique needs.
That’s something no super fund engagement strategy can replace.
Advisely Board
