30 years on, communication with super members as vital as ever

Celebrating its 30th anniversary this month, Australia’s $3.4 trillion compulsory super system remains the envy of retirement income strategists the world over. We step through the latest developments and set out why it’s critical to keep members engaged.

The remarkable growth of Australia’s super system over the last three decades means that super’s now a key asset for over 16 million Australians. And the spotlight will only intensify as Superannuation Guarantee contributions boost inflows by 0.5% each year – reaching 12% by 2025.

Retirement income covenant elevates retirement phase

Aimed at shifting the focus of super from accumulation to deaccumulation, APRA’s retirement income covenant takes effect from 1 July 2022.

Getting to the heart of what super is for, super funds must clearly outline on their website their strategy for how their members’ lifestyles will be funded after leaving work[1]. The strategy will then be used as the yardstick against which members’ retirement outcomes are measured.

Consolidations tipped to accelerate

Super fund consolidations gathered pace since APRA’s first annual performance heatmap. The maps unmask underperforming funds by helping members easily compare funds on three key metrics: returns, fees and member outcome sustainability.

With their performance under the spotlight, funds must compellingly explain the value they provide. So industry funds that have relied on B2B relationships to grow are doubling down on both retention and acquisition.

In this battle of the fittest, only the biggest and best performing funds will survive - with the rest increasingly engulfed by consolidations.

Smarter member messaging drives positive results

As super balances swell and competition intensifies, member interest in super is only going to increase. Here’s how to get your member communication working harder:

• Use digitisation to personalise messages. It’s about members feeling understood and empathised with – treated as a person, not an account number – being engaged in conversation rather than being talked at.
• Develop trusted relationships through long-term message planning instead of one-off or sporadic efforts. Regularly contacting your members isn’t enough; your communications must provide real value and build your reputation as a capable and dependable provider.?
• Beyond fees. While you want members to know you’re very competitive and providing good value for money, over-emphasising fees in member communications can be a race to the bottom. Showcase your value.
• Impact matters. Members want to know that their investments will not only provide for them in the future but are actively making the world a better place. Talk about sustainability to strengthen the connection between your brand and your members.
• The ripple effect. Having a strong brand story attracts more than just members; it’ll help you attract and retain talent in an increasingly contested labour market.

Want to know how to strengthen your super fund’s messaging across different channels and improve your engagement with members, financial advisers, employers and your team? Let’s talk.?

[1] APRA, Implementation of the retirement income covenant, 7 March 2022, accessed 30 June 2022.