From Kicking Goals to Kicking Up Super: The Matildas Meet Superannuation
Well, if you ever wanted to see an unexpected analogy, here it is: The unwavering support Australians have given to the Matildas soccer team is much like superannuation executives backing the Retirement Income Covenant. Bear with me; it's about to get interesting!
Oh the last few weeks of watching our Matildas in nail-biting matches? The fervour with which we cheered every goal, every pass, and every save? Now, imagine if that same energy and commitment were directed towards the Retirement Income Covenant. I mean, who wouldn’t get a thrill from discussing sustainable retirement income strategies over the BBQ?
You see, just as FIFA once underinvested in women's soccer, thinking it wouldn’t match the men's game in popularity, there's a risk that superannuation companies might rely too heavily on past numbers or just generally remain laggards, with the only inkling of any change at the behest of APRA. "Women's soccer? Nah, let's not pour much into that." One World Cup later, the Matildas have not only captured our hearts but the women's soccer game is no doubt raising eyebrows at FIFA’s headquarters for the global audience tuning in. FIFA's previous assumptions? Out the window! That's right; they completely misread the opportunity, and now, they'll be playing catch-up (for the 2027 World Cup!)
Likewise, if our superannuation giants decide to base their technology and advice strategies on yesteryear's numbers, they will be short changing a tidal wave of change that is already upon us. We can't ignore the sheer number of Australians about to hit retirement. And boy, it's a big one!
As more and more Australians waltz into their golden years, we're talking about a significant potential impact on the wealth and financial stability of our sunburnt country. And with that, we need Superannuation funds to invest in the technology, people (advisers) and product to meet those needs. The outflows for many super funds have already started and as the chart indicates above, the avalanche will continue to steam-roll on….
This isn't just about ensuring our retirees can afford the occasional prawn cocktail (though that's essential too); it's about maintaining the economic stability of Australia. We can't afford for superannuation companies to be ill-prepared for the coming surge in retirements.
So, to all the superannuation executives out there: let's take a leaf out of the Matildas’ playbook. Let's be proactive, aggressive and committed - invest in the Retirement Income Covenant wholeheartedly (and be poised for the Quality of Advice Review legislative changes), and most importantly, let's not let internal red tape process get in the way and months tick by with inaction. We are now in the peak retirement phase for baby boomers, with 600,000 expected to retire in the next 5 years.
It requires a cultural mindset shift to look for alternative technology, administration and data solutions (ie HESTA + Grow Inc). Super executives should start looking at investing in better on-boarding and member retiree portals for advisers (even co-invest with other funds), less of the yawn and more of the yippee member comms, deeper adviser referral partnerships, find-an-adviser white label solutions for its members (a service offered by Adviser Ratings ;-)) as a start…
Despite Wednesday night's heartache, as the Matildas have shown us, with the right support, commitment, and preparation, we can achieve goals beyond our wildest dreams. Or, in this case, ensure a comfy retirement for all Aussies. Who’s with me?
