Tech and demographics drive super trends

19-May-2017

By Megan Tran

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The Australian superannuation industry is facing a transformation driven by a new wave of demographic, consumer and technology changes, according to Bravura Solutions.

The financial services software solutions provider has developed a white paper identifying the 10 main trends that will reshape the super industry and investigating the role technology will play as a key enabler of this transition.

Bravura found new technology was changing the demographics of the industry, with the membership base of super funds now more diverse and broadly distributed than ever before.

Millennials were creating a new tech-savvy cohort of super fund members who expected tailored offerings and mobile digital interactions in real time.

The paper found that the changed demographics meant members were more assertive, “demanding increasingly sophisticated and personalised servicing that meets their individual circumstances at any given moment”.

“They want flexible offerings that can be easily adapted throughout their lifecycle to reflect changes, such as their capacity to save into their super, their risk appetite and investment needs, and their communication preferences”, the paper reported.

It found demand for online advice had also increased as members expected funds to play a greater role in helping them to meet their retirement savings goals, ensuring those savings lasted the distance and would fund their future health and aged care needs.

Bravura’s research also showed baby-boomers and generation X were increasingly searching for financial advice.

Bravura Solutions product manager superannuation APAC Scott Kendall said gen X were mainly seeking to structure their investments and maximise their retirement income stream.

“They are trying to understand what they want to do in retirement and millennials are coming through as first group of super members to have the full benefit of super guarantee. It’s still a long term concept for them,” he said.

Kendall pointed out baby-boomers should have a similar outlook.

“They are looking at their lifestyle and asking ‘what should I expect from retirement?’ They are asking how they accommodate to balance out that lifestyle,” he said.

Retirees should map out concepts of what they wanted out of retirement and devise a workable plan, he suggested.

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