Many superannuation funds are still operating as if the only challenges that their retiring members faced were financial ones. It’s doubtful that any intelligent fund manager really believes that a happy and successful retirement is dependent solely on good financial management. Just planning for a good financial solution is only addressing half of a retiree’s challenge.
While there’s no doubt that financial security is a critical element of a successful retirement, it’s certainly not the only important factor. There’s now plenty of research, anecdotal evidence and feedback from various professionals which clearly indicates that lifestyle issues like health, relationships, our attitude, our purpose in life, community involvement and spirituality are just as important if people are going to enjoy 20+ years in some form of retirement. There’s not much fun in being financially secure if your health is poor or the relationship with your partner is strained or you’re bored. In spite of all this, some funds persist with the myth that retirement is all about money and largely ignore lifestyle issues.
The reality is that the transition from full time work to some form of retirement is a period of major change for most people and major change often means major stress. Currently, most retirees have to figure it out by themselves.
This means that every year most super fund members are approaching retirement totally unprepared for the various lifestyle challenges that will impact on them. Those with a financial plan will think that they have done the responsible thing and planned for their retirement only to find they’re faced by a range of issues that no one told them about. Instead of walking hand in hand along beaches, many couples are struggling with the challenges of living together 24/7. A divorce at this time of life is both an emotional and a financial disaster and it’s not uncommon.
With both the financial planning and superannuation industries coming under increased pressure from politicians, regulators and the media, now seems a good time for them to start thinking about improving the services to clients. Having an interest in their clients’ wellbeing rather than just their money, could be a good place to start.
Some innovative super funds and financial planners have acknowledged that their clients will have some lifestyle challenges as well as financial issues to manage and have started to offer information and advice in these areas. This strategy is clearly a win/win. The client gets better advice and the super fund establishes a better relationship and creates a competitive product advantage by offering a service that most of its industry ignores.
It’s no longer difficult for funds and financial planners to provide this lifestyle planning service. Much of the information that fund members need to think about is available in a range of books.
The funds that are setting the trend in introducing lifestyle advice for retiring members are using material produced by Baby Boomers Life Change. Currently 4 funds are using these books, articles or seminars and this number is expected to grow in the second half of the year.