Digital advice uptake exceeds expectations as member engagement grows

ifa

This comes at a time when the industry grapples with ways to service the largest number of retirees in this country’s history begin to hit the market, many of whom are in need of advice.  One way that super funds in particular have been looking to fill the gap is through digital advice offerings, which has been adopted by financial giants such as AMP.  However, according to head of Midwinter Advice Products Michelle Lusty, doubts about how much clients and members will engage with digital advice have been persistent. 

“Many in the industry will tell you members won’t do it themselves, they must have a human in the loop, and that is certainly the case for some aspects,” Lusty said at an industry event in Sydney last week.  “But for members that just don’t have that option, these digital tools are getting real use and real results.” She added: “Last year, Aware launched their Retirement Manager. Since the launch, 96 per cent of members that use the tool can actually draw down more than the legislative minimum, and for members using the tool, 15 per cent of them have gone on to actually open an account-based pension.” 

The rest of this article can be found at ifa.com.au.