Mr Mann succeeds retiring CEO Douglas Latto, while Mr Harvie has taken over the reins from Terry Rhodes.

“I would like to thank Douglas and Terry for the many years they have invested into developing the WSSA into the representative body it is today,” Mr Mann said. “We intend to build on their work so that members can continue to deliver vital superannuation services to everyday Australians throughout a period of massive transition.”

WSSA members provide financial education and advisory services to thousands of corporate superannuation funds across metropolitan and regional Australia. They work with Australian companies and their employees by bringing financial education to the workplace at a low cost through structured programmes set in conjunction with employers and product providers. They also work with employers and policy committees to help ensure members receive competitive benefits and features, at competitive prices.

“Workplace superannuation specialists are involved in improving the financial literacy of many thousands of superannuation fund members on a daily basis, however in the current political environment their work is sometimes undervalued and underappreciated,” Mr Mann said. “The WSSA represents its members at an industry, government and regulatory level and our number one goal is to support them so that they can continue to provide their vital services to the many thousands of everyday Australians who need them.”

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Terry Rhodes

Advisers specialising in the workplace superannuation space are ideally placed to offer online financial wellness programmes, according to Workplace Super Specialists Australia (WSSA) President, Terry Rhodes and should be looking to broaden their service offer to include these types of initiatives.

“Workplace super specialists are in the best place to provide financial education literacy to employers and their employees, and could be looking at fintech providers, who are developing financial literacy programs at a great rate of knots, to help them deliver.”

Mr Rhodes said both traditional and non-traditional fintech providers are already delivering a range of financial wellness programmes, covering education around for example, budgeting, spending, saving for emergencies, superannuation and preparing for retirement.

“These types of programmes are gaining traction with employers and we see this as a huge opportunity for workplace super specialists who could partner with or white label solutions from providers,” he said.

Mr Rhodes will be presenting a session on workplace member engagement and a global perspective on financial wellness programs in conjunction with former Moneywise general manager, Paul Mann, at the WSSA conference in Sydney this Friday.

“We have been looking at providers who have been delivering online financial literacy and wellness programs to employers in the UK and the US and will be reporting back on our discoveries,” Mr Rhodes said.

The session will look at four key providers, including:

• Learnvest
• HelloWallet
• Sum180
• Mercer

The session follows on from last year’s release of the WSSA’s Financial Wellness Index (the Index), which found almost two in five Australian workers need to improve their financial wellness and only one in three is considered truly financially well. Research for the Index, which was conducted by CoreData on behalf of the WSSA, revealed that 39% of employees were either ‘financially unwell’ (12%) or had ‘room for improvement’ (27%).

This year’s WSSA Conference will also feature an employer’s view of the value of workplace super specialists by Kennards Hire’s Training & HR Projects Manager, Marc Calwell.

Register for the WSSA Conference. 

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Douglas Latto

Fewer superannuation funds, reduced innovation and less competition within superannuation funds could be the future of superannuation in Australia if the Government chooses to go down the path of a tender or auction for fund selection, which looks to restrict the number of default funds to a maximum of 10.

According to the Workplace Super Specialists of Australia (WSSA), these ‘unintended consequences’ will significantly impact the effectiveness and sustainability of competitive superannuation funds in the Australian market if they are not chosen for the default fund list.

“Is this what the Government wants,” asked WSSA President Douglas Latto.

“We have consistently said that employers are best placed to choose default super funds,” he said, “and this is based on our experience over a number of years.

“Also, it is too early to decide on the effectiveness of MySuper as it has not had a chance to operate in an open and unfettered marketplace.”

WSSA is still examining the assisted employer choice model and the merits of the assisted employee choice model, the other two options outlined in the Productivity Commission’s findings.

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WSSA has developed a ‘Financial Wellness’ index for Australians.

Australians are on a huge spectrum of Workplace Financial Wellness with only 6% classified as ‘superstars’, and 12% as ‘financially unwell’ meaning they are in desperate need of financial help.

According to the Workplace Super Specialists Australia (WSSA) who developed its Financial Wellness index in conjunction with CoreData, financial wellness is:

• A state of being healthy, happy and free from any financial worries and stressors;
• Being able to live your desired lifestyle for the rest of your life without financial anxiety or fear;
• Having a clear understanding of your financial situation and having the ability to live within your financial means.

Australians who were ranked as ‘financially unwell’ typically struggle with the first building blocks to wellness, that is budgeting and debt management.

They are also stressed and overwhelmed, with almost all indicating they are not financially secure for the future (96%). The vast majority indicated their finances are out of control (91%).

In addition, females are overrepresented in this group, and most have poor financial literacy. Many feel they cannot live within their means, and need help with the most basic financial planning skills.

In comparison, ‘Superstars’ have little to no anxiety when it comes to their finances, short and long-term financial goals are adequately defined, and risk management, estate, and retirement savings plans are in place.

This group has good financial habits they regularly implement, including research, monitoring investments and spending, as well as regularly reviewing arrangements such as estate plans. The majority of the Superstars also have a dedicated financial adviser (56.6%).

WSSA President Terry Rhodes says the survey demonstrates the clear iinks between employee financial literacy and perceived levels of financial wellness, and financial stress and productivity.

“We know employees who lack financial wellness tend to be more stressed, as observed by more than three in five employers (63.3%),” he says.

“Further, a significant number of employers also noted presenteeism (43.3%), low morale (30%), and absenteeism (16.7%) as other consequences of poor financial wellness.

The high correlation between financial literacy and financial wellness means there is an extremely powerful and potent solution that can be used to ‘even out’ the wellness spectrum.

“Financial wellness programs have a clear benefit for all involved, employees and employers alike, and if we play that out even further, a national benefit,” says Rhodes.

The survey showed despite the costs of poor financial wellness, only 15.2% of the businesses surveyed had implemented a financial wellness program.

Yet three in five of those that had have seen an increase in the overall financial wellness of their employees over the last six months.

“Employers need to take a look at the data on wellness, as it is both powerful and empowering and is one of the most effective ways of positively impacting the behaviours of employees and how they feel.”

Other findings include:

• Financial literacy underpins financial wellness, with 95% of the superstars having strong or very strong financial literacy compared to less than 4% of the financially unwell.
• Males are typically more financially well than Females, possibly due to factors such as workplace discrimination, wage ceilings and financial abuse within relationships.

• Age has little effect on the wellness of each individual, indicating that financial wellness is not an absolute measure, but rather is relative to each individual’s situation.

For a full copy of the findings from the research, click HERE.

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Terry Rhodes

The Workplace Super Specialists Australia (WSSA) Financial Wellness Index has found almost two in five Australian workers are in dire need of improving their financial wellbeing, with only one in three considered truly financially well.

According to CoreData who conducted the research on behalf of the WSSA, just over one in three or 39% of employees were categorized as either ‘financially unwell’ (12%) or as having ‘room for improvement’ (27%), indicating that much of their financial situation is in desperate need for improvement.

Under a third (29%) of employees were rated as ‘on the way to wellness’, while 26% were rated as having ‘financial wellness’ and 6% as ‘super stars’.

“This data should be regarded as a real cry for help from everyday Australians living the day-to-day reality of their financial wellness,: says Terry Rhodes, President, WSSA. “It is a situation that is both stressful and costly for employees and employers.”

The research demonstrates a typical pathway to financial wellness among Australians with sequential ‘building blocks’ to success. This suggests an initial focus on achievable shorter term financial objectives, building confidence towards looking at long-term financial goals.

These categories were devised by CoreData based on employee responses to objective and subjective questions that related to their personal day to day circumstances and long term financial preparation.

Alarmingly, lack of financial wellness is driving absenteeism and presentism in the Australian workplace, estimated to cost at least $33 billion annually to businesses[1].

The most common behavioural impact of poor financial wellness in the workplace as described by employers is stressed employees (61%). This is followed by unengaged/distracted employees (43%), low morale (30%), unhealthy employees (23%) and absenteeism (16%).

The research also found there was a clear difference between male and female employees, with almost one in two males being ‘financially wel’l or ‘superstars’, compared to less than a quarter of females. On the flip side, almost one in two females are ‘financially unwel’ or have ‘room for improvement’, compared to less than a quarter of males.

A key driver of financial wellness was financial literacy, as more than half of the ‘financially unwell’ have poor or very poor financial literacy, where as 93% of ‘superstars’ have strong or very strong financial literacy.

“This research highlights the strong link between financial literacy and financial wellness, and we know that financial advisers can make a huge difference to financial literacy,” says Rhodes.

Australian employers are highly supporting of improving financial literacy with more than 60% of the surveyed employers regarding helping employees develop their financial literacy as extremely or very valuable. An overwhelming 90% of employers considered one-one-one sessions with advisers as the most valuable way to communicate with employees.

“There is a huge opportunity for employers and financial advisers to have a positive impact on the financial wellbeing of their employees through engagement programs that build knowledge, help them to achieve their goals, are relevant and affordable,” says Rhodes.

Other findings:

• Only 6% of the ‘financially unwell’ pay off their credit card regularly, 21% indicated they spend more than they earn
• Two in three ‘room for Improvement’ employees save money regularly, yet few were confident they had adequate insurance (12%)
• Almost one in two who were ‘on their way to wellness’ indicated they had set specific financial goals, and two in three have average financial literacy
• Almost three in four ‘financially well’ employees always pay off their credit card and over half have a retirement savings plan
• ‘Superstars’ scored the top score in most sections, with 90% having adequate insurance arrangements, and 60% documenting their estate plan
• Financial literacy is the key to moving employees along the journey to financial wellness. Interventions need to consider the milestones each employee has reached in this journey. For those who require the most help, setting achievable shorter-term goals and building confidence towards longer-term ambitions is key to garnering behavioural change and ultimately improving employee financial wellness outcomes.

———

[1] (BUPA, 2015) (PriceWaterhouseCoopers, 2010)

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Douglas Latto

Workplace Super Specialists Australia (WSSA) has partnered with CoreData Research to canvass the views of everyday working Australians on their financial wellness.

Launching its Financial Wellness Index at its annual conference in Sydney on 26 August, the research asks Australians to evaluate their financial confidence, literacy, feelings and attitudes around all things financial.

From the research, the WSSA Financial Wellness Index will uncover findings on:

• The spending habits of Australians
• How often Australians worry about money
• How much net income Australians save each pay cycle
• Whether Australians struggle to meet their regular mortgage payments
• Australians expectations on what their retirement will look like at age 65 if they maintain their current level of savings
• How long Australians estimate they are covered for given their current insurance arrangements

“The WSSA is in a very strong position to access the honest views of a cross-section of the Australian population on all things financial, as we are approaching it from the employee position where Australians feel the impact of their financial wellbeing day-to-day,” says Douglas Latto, Chief Executive Officer, WSSA.

The WSSA is also conducting similar research with employers which could highlight any gaps between what employers feel day-to-day and how informed employers are of these employee attitudes and feelings.

“Australian employers can have a positive impact on the financial wellbeing of Australians through information and programs that can help them to find the solutions they need and are looking for,” says Mr Latto.

The WSSA Conference, which will be held at the Four Seasons in Sydney on 26 August 2016, will also feature Optus Vice President of Human Resources, Vaughan Paul who will explain to attendees how they provide financial education and literacy to their employees and the value they put to it.

To register for the WSSA Conference, visit: www.wssa.asn.au/conference.

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Douglas Latto

Workplace Super Specialists Australia (WSSA) will launch its Financial Wellness Index at its annual conference to be held in Sydney on 26^th August at the Four Seasons Hotel.

The WSSA Financial Wellness Index will provide a real measure of the financial stress felt by employees by quantifying the impact a range of financial issues have on their wellbeing.

According to the WSSA’s Chief Executive Officer Douglas Latto, the workplace is where employees live their financial problems day-to-day.

“There are mortgages to be paid, credit card debts, kids to put through school, and the need to save for the future. This can create significant financial stress which can affect both attendance at work and commitment to a job.”

For this reason, he says the most valuable place to deliver financial education is at the workplace.

While schools is often thought of as the starting point for financial literacy, Latto says the inability to put these lessons into practice means they are not always fully understood.

“The workplace is where a difference can be made – and thousands of lives can be improved, resulting in a more productive and happier workforce.”

Also participating in this session is Optus Vice President of Human Resources, Vaughan Paul who will explain to attendees how they provide financial education and literacy to their employees and the value they put to this.

This will be followed by a panel session investigating the role of technology in delivering financial education. Will is replace it replace the workplace super specialist who delivers in person, or will it supplement their work and provide greater reach? An expert panel will help paint a picture for the future.

The WSSA Conference will b held at the Four Seasons in Sydney on 26 August 2016. To register visit: www.wssa.asn.au/conference.

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Douglas Latto

Workplace Super Specialists Australia (WSSA) is calling on Treasury to make the primary objective of superannuation more meaningful to working Australians.

The WSSA made the call in a submission responding to an Australian Government invitation to provide feedback on its Objective of Superannuation Discussion Paper issued last month.

An association that represents workplace superannuation specialist advisory businesses, the WSSA argues that the primary objective of superannuation is to ‘support working Australians in providing an income sufficient to maintain a standard of living in retirement similar to what they had during their working lives’.

In comparison, the WSSA considers the Financial System Inquiry’s definition of the primary objective of superannuation to ‘provide income in retirement to substitute or supplement the Age Pension’ as ‘impersonal’.

“There needs to be a method of engaging working Australians to be active rather than passive participants in securing their financial security in retirement,” says Douglas Latto, Chief Executive Officer, WSSA.

He says the WSSA believes this more personal primary objective, supported by three high level objectives of adequate levels of retirement income, relieving pressure on the Aged Pension and increasing national savings, is the basis of a stronger super model and one that creates a ‘clearer’ path for Regulators going forward.

“For superannuation to matter to Australians it has to be put in a framework of objectives and principles, which people can relate to and strive for.”

Latto says: “The above objectives need to be supported by principles and we concur with the four outlined in the Charter Group’s 2013 submission to Treasury titled ‘Objectives and Principles of the Australian Superannuation System’.

The four principles in that submission included:

• Adequacy – The degree to which the retirement income system enables people to achieve a sufficient standard of living in retirement relative either to the standard they enjoyed while working or as compared to an objective budget standard for retirees.
• Sustainability – Government expenditure, both actual and notional (through tax concessions) on the retirement income system (that is, the Age Pension and superannuation) must be affordable over the long term. Successive intergenerational reports have concluded that population ageing will place substantial pressure on Australia’s economy.
• Certainty – People should have sufficient confidence in the regulatory settings and their evolution to trust their savings to superannuation, including making voluntary contributions
• Fairness – A fair superannuation system is one that treats people in the same circumstances equally and is perceived to be fair by the community. Given that building up superannuation is connected with employment, regard has to be had to those, who for a variety of reasons, have not fully participated in the workforce and therefore have less superannuation than others in their age cohort

Latto concludes: “Retirement is about people. Superannuation is a vehicle which working Australians can utilize to improve retirement outcomes and reduce reliance on Age Pension support. If we keep this in mind, then we shall be on the right track.”

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Douglas Latto

The Corporate Super Specialist Alliance (CSSA), an association that represents workplace superannuation specialist advisory businesses, has rebranded as Workplace Super Specialists Australia (WSSA).

WSSA CEO, Douglas Latto, said, “What our members are really focused on is bringing financial education to the workplace. We believe our new name better reflects the type of work our members actually do with employees, including education, advocacy and employee empowerment.”

Mr Latto said WSSA members would continue to work to a set of guiding principles including accessibility, financial literacy, efficiency, transparency, affordability and adequacy. This has been enshrined in a new Code of Conduct which members must adhere to.

“In the past, we were sometimes mistaken for an association of corporate super funds when what we really do is construct communication programmes in conjunction with employers and policy committees, to ensure their employees are getting the most out of their super and managing it appropriately,” he said.

The WSSA also works with regulators, government, funds and members to continue to provide more innovative ways to provide this important service to employees.

To celebrate the new name and direction, the WSSA will host an inaugural conference at the Shangri-La Hotel in Sydney in August. More details to follow.

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Douglas Latto

Assertions made by The Royal Commission into Trade Union Governance and Corruption, suggesting that industry funds are paying substantial sums to the unions with which they are associated, come as no surprise to the Corporate Super Specialists Alliance (CSSA).

“The union’s negotiating and bargaining agreements would obviously be drawn to promote the industry fund to which they are related,” CSSA CEO Douglas Latto said. “Therefore, we believe the potential for conflict always existed.”

Mr Latto said any conflict of interest, perceived or otherwise, in the areas of enterprise bargaining and the selection of default funds should be examined and removed. “The industry funds movement has been very vocal about removing conflicts of interest from the financial planning industry. It is now time for them to apply the same standards within.”

In the interests of an open market, the CSSA is therefore calling for the decoupling of default superannuation funds from the industrial relations system.

“If the Fair Work Commission is allowed to select a limited number of default funds in modern awards, then hundreds of thousands of employers will be forced to change the default funds they have already chosen for their staff,” Mr Latto said. “This will create a considerable time impost on employers and will likely also result in more employees having duplicate accounts and potentially higher fees – that is, fees associated with the old account and then fees associated with the newly created account. This is a no win situation for employers and employees.”

Mr Latto said employers often negotiate special discounts or special conditions on behalf of their staff and often subsidise fees or pay insurance premiums for their employees. “Some MySuper funds do not allow this structuring to occur and do not recognise the employer in the superannuation relationship at all,” Mr Latto said. “Forcing employees into an inferior fund just because it is nominated in an award does not make sense.”

The obvious solution, according to Mr Latto, is to allow any MySuper fund to be a default fund. “The CSSA has always stood for choice for both the employee and the employer. The only way to bring down costs, improve efficiencies and introduce large-scale innovation is to have an open market. It’s time to break the nexus between unions and superannuation and allow any MySuper fund to be a default fund. Let Australians choose from an open market and remove the vested interests once and for all.”

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