Education + Engagement at the heart of the Retirement Income Covenant

In the face of increased competition and regulatory requirements and expectations focused on retirement incomes strategies, superannuation funds find themselves at a crossroads.

With the superannuation environment rapidly changing, it's time to explore the ways the entire super fund ecosystem - which includes funds and their digital partners - can work together. This will help the funds explore ways to address the challenges their members face, especially heading into retirement.

Heightened competition and market consolidation necessitates a shift to robust member education and engagement - funds must strive not only to attract members but also to retain them.

This means that funds must not only understand their members' needs but also provide them with the support, advice, education, and solutions required to successfully navigate the complexities of retirement planning.

As the Minister for Financial Services Stephen Jones recently said, "…the future is likely to require more meaningful interactions between funds and their members…"*

We believe that a substantial part of that, is the way funds engage with their members in the digital sphere - and this now extends well beyond merely providing useful tools and generic calculators. In today's user environment, engagement must also incorporate effective education and knowledge sharing.

Drawing on deep experience in the sector, Keplyr is collaborating with a growing number of super funds to more actively and holistically educate and engage with members, with a particular focus on digitising retirement income strategies and journeys.

Digital engagement must encompass a range of strategies, tools and solutions that educate, inform, advise, simplify and, most of all, provide assurance in decision-making.

Many superannuation funds currently offer online calculators to help members project their super balances and what they might retire with. While these calculators are a step in the right direction, they often fall short of true member engagement.

Innovative tools, with the member firmly in mind from a design and experience perspective and supported by user analytics, are essential components of a broader engagement push by funds. These tools provide members with the both the detail and the understanding they need to make informed decisions about their retirement planning.

It's vital for the industry as a whole to help members overcome the knowledge barriers and dispel common myths and preconceptions around finance and advice.

To bridge the knowledge gap and effectively interact with members digitally, Keplyr is working closely with proactive superannuation funds to innovatively engage with members and help them overcome these hurdles. This, in turn, empowers members to design their retirement their way, while building a deeper, more trusted relationship with their super fund.

More than simply developing engaging tools and tracking usage, the key has been to create effective ways to raise awareness, and help fund members achieve greater knowledge, capability and confidence around retirement outcomes and goals.

* https://ministers.treasury.gov.au/ministers/stephen-jones-2022/speeches/address-afr-super-and-wealth-summit-2023