Superannuation in Australia is a $1.995 trillion industry1, which is estimated to grow to $3.5 trillion in 20252. It's an industry that is experiencing a significant change in its membership demographics. 2011 marked the year when the oldest Millennials turn 31 and the oldest Baby Boomers (aka "the silver tide") turned 65 and reached retirement age. As more of the baby boomers reach preservation and retirement age, the proportion of members drawing an income from their superannuation account is increasing, while the proportion of members in the accumulation (or savings) phase is decreasing.
So with accumulation members declining due to an ageing population, and a freeze on Superannuation Guarantee percentage increases until 1 July 20213, we're looking at a noticeable difference in the amount of super monies being accrued - which ultimately impacts a super fund's assets. As a result, member engagement is at the top of the priority list for super funds. The need for product innovation and to be a differentiator in a competitive market is more critical than ever, as products and services must cater to the individual needs of members.
The days of a 'one size fits all' approach of communicating to members once a year via their annual statement are over. There is an increasing demand for engaging members through smarter segmentation, regular accurate retirement income projections, and simple, relevant personalised information via their channel of choice. The most successful super funds will differentiate themselves by enhancing their services and how they communicate with their members to keep them engaged and loyal.
What will be your differentiator?