Provided by Mercer: 13/2/09
Mercer’s helpline services fielded a record number of calls during 2008. Superannuation members sought advice on their investment options, in the wake of stock market volatility.
Mercer took 413,000 calls in 2008, a 17 per cent increase on 2007. Calls to client helplines increased steadily in the latter half of the year, spiking dramatically in October, a month in which the Australian share market plummeted by 12.9 per cent. Requests for information on investment options were up by 72 per cent in the latter half of the year and calls regarding redundancy payments were 84 per cent higher, compared with the same period in 2007.
David Anderson, Asia Pacific leader of Mercer’s outsourcing business said access to personal, professional advice is particularly valuable in these unprecedented times.
“Stock market declines and the economic downturn seen in 2008 were among the worst in generational history. Many super plan members were faced with situations they hadn’t encountered before. In this environment, it is great to see that our members had immediate access to limited financial product advice over the phone, to guide them in making important decisions about their financial future,” he said.
The need for access to advice as a result of market volatility was highlighted in late 2008 when the Australian Securities and Investments Commission (ASIC) announced it would allow super plans to apply for temporary relief to provide limited guidance to members.
“We were one of the first to have dedicated financial advisers providing financial advice over the phone to superannuation plan member and have offered this valuable service since 2003. Consequently we didn’t need to apply for temporary ASIC relief as we already had an established process of providing scalable advice to our members and were able to respond with written financial advice when our members needed us to,” Mr Anderson said.
Mercer’s helpline services currently has eight qualified and authorised financial advisers that provide limited personal financial product advice in real time over the phone.
“Our helpline advisers were able to discuss the differences between investment options and the implications of switching portfolios with members, allowing them to make informed decisions and then to act, should it have been appropriate to do so. In the absence of this kind of advice and action, there can be a tendency to go for the safest option or to do nothing. Depending on an individual’s circumstances and time frames, these may not always be the best options for their future,” he said.
Mr Anderson said the response from Mercer’s members demonstrated the importance of superannuation plans in providing access to financial advice.
“Superannuation plans are in a unique position to offer a number of touch points to make it easy for members to access advice,” he said.
“One of the advantages of Mercer’s integrated member service model is that it removes the barriers to seeking personal financial advice. We think it’s important that superannuation members know they have a free, convenient, trusted route to seek out information that relates to their personal circumstances and enables them to make decisions about their superannuation,” he said.
More information
Danielle Murdolo
Media Consultant to Mercer - Buchan
Phone: (03) 9866 4722
Kyahn Timms
Media Consultant to Mercer - Buchan
Phone: (02) 9866 4722
This information has been prepared by Mercer (Australia) Pty Ltd ABN 32 005 315 917 for general information only. The information does not take into account your personal objectives, financial situation or needs. Therefore, you should not act on this information if you have not considered the appropriateness of this information to your personal objectives, financial situation and needs. You should consult a licensed or appropriately authorised financial adviser before making any investment decision.
