According to AMP the new additions are meant to give members the ability to assess and execute their contribution and investment strategies in one place, as well as access a super projection to see what changes they should make to help reach their retirement goals.
“For the first time, members can explore how selling their home could help grow their super with downsizer strategy support, as well as tax-efficient recontribution advice, helping reduce tax for beneficiaries and increase tax-free retirement savings,” AMP said.
They added that their retirement projections will now include actual insurance premiums for “a more accurate picture”, with the forecasts “allowing members to not only see what their income is looking like in retirement, but also how long it will last”.
AMP states this will include the benefits of switching on AMP’s Lifetime Boost feature and age pension estimates.
The company highlighted that part of this initiative is motived by the fact that personalised digital experiences drive member engagement with their finances.
In AMP’s membership pool, over 17,500 ‘retirement health check journeys’ have been completed since January, with over 20,000 members engaging with their digital financial advice service since its launch.
This marks a 33 per cent increase on the total number of members getting guidance on their retirement planning since last year.
“At AMP, we’re passionate about giving our members greater control and financial confidence to help them retire with higher income,” said Melinda Howes, AMP Group executive for superannuation and investment.
“We don’t just rely on automation and algorithms – we think about how people actually feel and behave when making financial decisions. That means going beyond general advice or one-size-fits-all retirement calculators, with advice and education tailored to each member.”
The three new “journeys” included in the solution are:
- Super projection – Provides an estimate of a client’s potential retirement income, outlines any possible benefit from Lifetime Boost (if eligible), indicates the level of government age pension they may receive, and assesses whether they are on track to meet their long-term retirement objectives.
- Contributions strategy – Sets out how clients can enhance their retirement savings by selecting contribution types designed to maximise the growth of their superannuation balance.
- Investment strategy – Highlights investment options aligned to a client’s preferences and models how switching between these options could influence future retirement income outcomes.
“We’ve seen an incredible uplift in the numbers of members engaging with our service and we’ve made some great strides forward with a market-first digital financial advice solution that makes financial advice easier to access and understand for all our members,” Howes said.
As it stands, a large portion of Australians remain unengaged with their superfunds, missing out on opportunities to improve their retirement in doing so.
According to AMP data, 27 per cent of Australians do not at all engage with their super fund, and roughly a further 50 per cent only engaged with their super fund one or twice a year.
Included in that 27 per cent is a large number of Australians who do not even know who their super fund is, according to AMP.
In regard to this, Howes stated “we know that too many Australians have no idea their super fund provides this advice. Our goal is to raise awareness of these solutions and help more Australians make smart choices, feel supported, and retire with more.”
