Behind big super’s plan to offer you financial advice

Australian Retirement Trust wants the government to pass its Future of Financial Advice legislation in order to widen its financial advice services. How might it all work?

Australian Retirement Fund general manager advice, guidance and education Anne Fuchs. Picture: Ben Symons

The nation’s super funds will be able to widen the range of financial advice they offer under the new Future of Financial Advice legislation. So what does it mean for you?

Up until very recently, most Australians in big funds simply chose a default fund. In other words they went into the balanced super fund option where they asked very few questions. As super becomes more important, those questions are getting more complex and in the latest episode of The Money Puzzle, we examine those issues.

At the second biggest industry fund in the market – The Australian Retirement Trust – plans are afoot to expand the nature and range of advice for its two million members. The move would mark a major change in financial advice and strike a new balance in a sector which has been troubled with both qualification issues and a problematic sales cultures.

Who is the guest?

Anne Fuchs, executive general manager advice, guidance and education at the Australian Retirement Fund

Why her?

She is one of the key proponents behind the push to enable large super funds to expand their range of financial advice

What are the topics?

• How the market’s second biggest fund – ART – plans to expand advice

• The reality of super‘s little known inheritance tax

• What is Nick Bolton up to at Magellan?

• Can the ASX withstand the loss of major stocks?

Question of the week

Regular listener Scott asks: “I’ve been looking at my super annual statement. It shows the 15 per cent tax on my contributions but not the tax on income. Apparently it’s all rolled into the unit value. Surely the super funds know what income is earned and what tax is paid? The ETFs I hold outside super can tell me dividends, capital gains, franking credits and everything. Is this just my fund, or do all super funds hide the details to keep us ignorant of how things actually work?”

Questions always welcome to the podcast, via [e-mail]

Originally published as Behind big super’s plan to offer you financial advice