There is no doubt that there is plenty of scope for advisers to be busy for the next 20 years. Australian’s need for financial advice has never been greater. But there is one area that needs financial advisers’ attention more than most, and that is superannuation.
APRA figures show that 2.3 million people have withdrawn $17.1 billion from their superannuation accounts by June 21st, 2020. The government expect $27 billion to be withdrawn by mid-September. The early release scheme has put super in the spotlight, and got more people than ever before thinking about their super, and what it can do for them.
While the early release scheme has created this spotlight for super, it has also drawn people’s attention to their super balance, and what fund they are with, even if they don’t intend to withdraw.
The Liberal government are signalling that there will be more changes to super – not for the consumer so much, but for the industry itself, meaning all eyes are on this large sum of money that has the potential to do so much for Australians. We have ex-PMs in the Labor party accusing this government of a war on super, and that no changes to an SG increase will seriously affect the retirement of lower income earners.
With all this attention at a press, government and personal level, now is the time for advisers to get more involved in the conversation around super. Of course, the missed opportunity of early withdrawal is a big one to cover, as is how much is really enough, and what is the right amount for people to be putting away.
But there is also a whole bunch of people who have their own SMSF, wondering now how to get returns in a volatile market, and relying on their accountants for advice more than financial advisers.
There has never been more opportunity for advisers to get involved in the conversation, add their views, and talk to their client base about super. It is also a great way to attract new business, as everyone wants an expert opinion on what they should be doing when things are so uncertain.
Once upon a time home ownership and property investment were two of the biggest conversations Australians wanted to have. With all that has happened this has definitely changed. It is the era of super, and advisers should be positioning themselves squarely on the front line to help people make life changing decisions for the better.
You have never been more needed.
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