Workplace super could be a source of long-term revenue and referrals as more employees approach their employers for professional financial advice, according to IOOF head of employer super Stephen Black.
What is the demand like for advice in the workplace?
Research shows that 72 per cent of people who switch super funds seek advice before doing so, with 19 per cent of those seeking that advice from their employer, and "by extension, the financial adviser for that workplace super plan".
How can advisers bring value to the wellbeing of employers and employees?
With more than 2.1 million actively trading businesses in Australia, there is a great opportunity for advisers to work in this space if they have the right value proposition and support. Being the adviser attached to a workplace super plan, you become the natural point of contact for all employees seeking advice on more than just their super needs, and when approaching new clients, offering workplace super advice will strengthen your value proposition.
At the same time, employers save time and money when it comes to the management of their superannuation obligations, while offering their staff a highly valued benefit – financial advice and a flexible super scheme.
Are employees also asking their employer for risk advice?
Anecdotally we do see employees asking their employer for risk advice. We believe this is due in part to increases in risk premiums and changes to risk definitions across the industry and there is more awareness. In addition, we can see from our Employer Super book that employer groups with an adviser attached are more likely to have members with a higher level of cover than the default.
How can risk advisers become involved with the corporate space?
One of the benefits from advisers being attached to corporate plans is that they have the ability to deliver education sessions on superannuation topics. Risk insurances are a very popular topic for advisers to present to employees and they can use these sessions as an opportunity to drive their personal/retail risk offers and build their book.
Does the corporate space hold some good opportunities for risk advisers?
Yes, as above. It can enable risk advisers to better service clients, grow their client and referral base, and create a long-term revenue stream.
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