Every Australian is required to save for retirement. Although we all have a superannuation account – our employers are legally required to make contributions to our retirement savings – very few people make conscious decisions about which superannuation fund they will hire to manage their investments.
Retirement savings, on the whole, are something that many Australians ignore until it is time to cash out and, unlike our mortgage or insurance, we often don’t think about whether we’re getting a good deal. Many Australians over 55 find it hard to work out when they can retire and calculate what they need. Only twenty per cent of the market use or intend to use a financial planner, leaving eighty per cent of Australians unadvised.
As a highly trusted Australian organisation, this client identified an opportunity to offer simple, transparent financial products to its customers, some of whom were losing trust in banks and other institutions to manage their money for a fair price. The project team designed a simple digital superannuation product and a transparent wealth business that would be supported by automated advice. As a responsible, trusted not-for-profit organisation that reinvests in its local community, this client was perfectly placed to offer financial services that emphasise ease, transparency and fairness.
Knowledge Society spoke to working Australians of all ages and levels of affluence to find out how they managed their financial affairs and what motivates them when it comes to saving for retirement and planning their finances – if they think about it at all. The project team hosted workshops and created multiple digital prototypes to see how users responded to different offers, a process complemented by Knowledge Society’s robust process to model a profitable business that would incorporate new technologies, such as automated financial advice, and create a pathway to revenue and customer stickiness for the client.
Unsurprisingly, users saving for retirement told us that the most important thing for them was not being ripped off. They wanted their super to be easy, digital and stress-free – essentially, it was a low-touch product and they don’t want more information, hassle or contact than they need. Peace of mind and trust, as well as visibility, were crucial: savers want everything in one place and to know that their investments are safe. Customers don’t understand how easy it really is to consolidate and switch super funds, so the offer had to emphasise the ease of switching.
Younger savers, for whom superannuation is a low priority, nevertheless enjoy being delighted, and appreciate education and empowerment; they wanted to understand superannuation better and feel more empowered. Older users told us they suffer from the sense that they ‘have not got their financial affairs organised – and it weighs on them,’ which led the team to identify an unmet need for ‘my financial affairs being sorted’ by a ‘trusted financial adviser’ in the mass market.
The client’s current customers told us that a superannuation product resonated with the organisation’s brand, whom many would trust to be their super fund. The client is now exploring a validation sprint to smooth the way for incubating this new business and bringing it to market.
To learn more about this project and how to work with Knowledge Society, get in touch.