Superannuation and Wealth Management form one of the essential sectors of the Australian society and economy. It exists for the sole purpose of helping Australians retire with maximum possible savings, enabling them to live their future lives at their best and retire with financial stability. While that may sound straightforward, wealth management in Sydney can be complex.
Due to the pandemic, the personal and professional lives of numerous individuals have been affected significantly, impacting their lifestyle and financial goals. Two of the biggest decisions that the Australian government made were regarding the homes and super. It leads to questions regarding the decision-makers, the people involved and effective ways to benefit individuals.
Superannuation is one of Australia’s significant pension and fund management systems that tends to the challenges of retirees and provides them with better opportunities. Over 12 million people, including Sydneysiders, have at least one super account, and 320,000 individuals have a total super of over AUD 1 million. Here are some facts and policy proposals to evaluate and optimise superannuation.
The Size of the Superannuation sector is Huge.
The Australian wealth management currently has about AUD 3.2 trillion, estimated to cross AUD 5.2 trillion by 2030. The sum is bound to increase along with the increase in mandatory super over time. Due to its size, it has a significant impact on the Australian economy and can aid it in times of need. The early release of super can help recapitalize entities on the ASX and promote investment in infrastructure.
Super can Help with Future Development.
In the rapidly developing world, there is an immense appetite for investments to help shape the future of Australia in the sectors of renewable energy, decarbonisation and sustainability. It means that the funds from Supers and investments can help drive the government’s ESG agenda.
Australians Rely on Wealth Management for their Sound Financial Future
The increasing interest rates are posing challenges to significant investment returns today. Historically, when one looks at the records from the past decade, a general balanced fund provided an annual return of 7.2% and a growth fund with an annual return of 9%, according to Chant West. Therefore, Australians seek confidence in their supers and services that offer wealth management in Sydney to secure their financial future and generate decent returns.
Australia is Getting Older
As a nation, Australia is getting older, and so is Sydney. About 64.49% of the population is between 15 and 64, and 16.21% are those 65 years or older. It shows that there are significantly more people moving from the accumulation phase to the retirement phase in the next 10 years. Therefore, wealth management in Sydney requires better retirement solutions to meet the needs of this growing population.
Need for Digitisation and Personalisation
The 21st-century innovation is known for digitising almost every field like finance management, marketing and e-commerce. Digitising the entire retirement and super plan provides wealth management companies with an edge over their competitors. To achieve this, the providers must conduct intensive research to understand what is appealing to the target audience.
Forego The Myths Surrounding Wealth Management
There is a general misconception that digitalisation only appeals to the millennials and would be hard for the older generation to follow it. However, research shows that today, older clients prefer digital engagement to the same degree as millennials as they have had the time to get accustomed to the mode of digital interaction.
Additionally, companies believed they could build personal relationships with the clients only through face-to-face interactions. However, technology allows wealth managers to connect with their clients through multiple modes to build their loyalty.