Investment Trends Logo

Response to APRA’s recent industry update

Investment Trends Research Helps Trustees Address APRA’s Call for Enhanced Super Fund Strategies

  • Members report the highest satisfaction when transacting on their pension account
  • 60% of retirees find super funds’ income products suitable for their lifestyle needs
  • Increased interactions lead to proactive retirement planning among super fund members

Sydney, 8th July 2024 – Investment Trends, a leading financial services research firm, responds to APRA’s recent industry update on the retirement income covenant implementation by offering critical insights from its latest Super Member Engagement (SME) Report and Retirement Income Report. These reports reveal significant improvements in super fund services and member satisfaction with their pension accounts, supporting APRA’s observations and highlighting essential trends and opportunities for the superannuation sector.

The SME report highlights 34+ service elements ranked by members for overall satisfaction. Transfer to and withdrawal from the pension account received the highest satisfaction ratings of 76% and 73%, respectively, while ease of access to information received a 71% satisfaction rating. These good satisfaction ratings underscore the success achieved in supporting retirees as they transition into retirement, echoing APRA’s observation that promoting the availability and access to retirement-focused information is crucial.

Eric Blewitt, CEO of Investment Trends, remarked, “Our data clearly shows that super funds are stepping up their game in service delivery. Members are recognising and appreciate the ease and efficiency of transactions and information access, which are critical components of their overall experience. The research provides trustees with insightful trends and “key driver insights, helping trustees track and measure the impact of these strategies to truly enhance retirement outcomes.”

The report findings also show that 60% of retirees either ‘agree’ or ‘strongly agree’ that their super fund offers retirement income products suitable to support their retirement lifestyle.

Blewitt added, “The positive feedback from retirees indicates that super funds are successfully aligning their product offerings with the diverse needs of retirees. This is a significant achievement, reflecting a deep understanding of member needs and effective product design, which resonates with APRA’s emphasis on addressing retirees’ needs. There are many tangible metrics that trustees can adopt to assist measuring and tracking the success of retirement income strategies.”

Investment Trends latest Retirement Income report identifies through advanced statistical modelling a super fund’s ability to provide helpful advice on post-retirement issues is the most reliable predictor of it being positively assessed as “suitable for retirement” in the members eyes.

Copyright 2024: Investment Trends. 2023 Retirement Income Report

Increased engagement also leads to a greater likelihood of members starting to consider their retirement plans, reflecting APRA’s emphasis on the importance of engagement and interaction in promoting retirement planning among super fund members.

Continuous engagement is key,” stated Blewitt. “Our findings suggest that the more members interact with their super fund, the more they start thinking about and preparing for retirement. This highlights the importance of maintaining regular, meaningful communication with members, a point also highlighted by APRA as critical for effective retirement planning. Our research helps trustees track this over time to assess the impact of their strategies.”

Despite the progress made, the research also identifies gaps and opportunities for super funds to accelerate the implementation of retirement income strategies.

Blewitt concluded, “There is still work to be done in terms of strategy implementation and tracking success, as highlighted by APRA. Our upcoming Retirement Readiness Benchmark report will offer super funds a valuable tool to track and enhance the success of their retirement income strategies.”

About the report

These insights offer valuable guidance for super funds aiming to enhance member satisfaction and support, reinforcing APRA's call for improved implementation and monitoring of retirement income strategies.

Interested in learning more about our industry research and insights?
Get in touch with us today.

About us

Our vision: To be the world’s most trusted industry research and analytics partner.

© 2024 Investment Trends. All Rights Reserved. Website by Wolf IQ.

Newsletter Sign Up

Feel free to sign up to our newsletter so that we can keep you updated on the latest company information.