Edwina Maloney

AMP has announced three new executive roles and a flattened organisational structure, as part of the ongoing simplification and streamlining of its business following the AMP Capital sales.

AMP will elevate leadership of its Platforms and Advice businesses in two new roles on its executive committee. A third new executive committee role of Group Executive Super and Investments will combine responsibility for the Superannuation–Master Trust and Investments businesses.

Edwina Maloney who leads the Platforms business and Matt Lawler who leads the Advice business, will continue to perform their current roles and become part of the executive committee. Their new titles will be Group Executive Platforms and Group Executive Advice, respectively.

AMP will conduct an internal and external search to fill the third position of Group Executive, Super and Investments. Jason Sommer, currently Director – Transformation and Investments, Australian Wealth Management will act in the role until the permanent position is filled. Chief Investment Officer Anna Shelley and Director Super and Investments Ilaine Anderson will report into this new executive position. Anna Shelley will also have a dotted reporting line to CEO Alexis George for group investment activities.

The appointments follow the recent decision to remove the role of Australian Wealth Management CEO, held by Scott Hartley and to simplify the business structure. It also follows the decision to combine the roles of Chief Financial Officer and Group Executive Transformation, now held by Blair Vernon.

AMP Chief Executive, Alexis George commented:

“The AMP Capital sales have made for a much simpler AMP and these executive changes reflect that by flattening our management structure, particularly in wealth management.

“This elevates key businesses to the executive team, further increasing visibility and accountability for performance and cost management, while also bringing the executive committee closer to our customers and to advisers.

“The new operational structure supports our focus on being a leading provider of retirement solutions and helping more Australians to meet their financial goals.

“The new executives have proved themselves as high-quality leaders and I look forward to working more closely with them.

“Again I would like to thank Scott Hartley for the work he has done to reposition AMP’s wealth management businesses.”

The new appointments come into effect on 31 July 2023.

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The new leadership team consists of a complementary mix of existing AMP leaders, leaders new to AMP and internal promotions. The team has the capability and experience to drive the transformation of the AMP Australia business, and each has the attributes to lead a high-performance culture.

Mr Hartley will have seven direct reports with a diversity of tenure, background and gender.

The updated operating model will mean a sharper focus for both Platforms and Super with these two businesses being separated. Accountability for investment performance is being brought into AMP Australia and a new Chief Investment Officer is being appointed to the leadership team. The structure will provide end-to-end business accountability for each Director to promote performance and execution of the strategy.

There are three new leaders joining from outside of AMP:

• Matt Lawler is the new Managing Director Advice. He brings experience in large scale advice transformations and a deep knowledge of building and operating successful advice businesses. He has led advice and broking businesses at MLC/NAB, was CEO Wealth Management of Yellow Brick Road, and most recently CEO of Wealth Market, a privately owned advice business.
• Anna Shelley is appointed Chief Investment Officer (CIO). Anna is a highly respected investment professional and leader. She has a deep background in investments, having spent over 13 years with JANA, as well as Perpetual Investments and has been the CIO of Equip super and Catholic Super funds since April 2018. Anna is replacing Debbie Alliston who is retiring from executive positions and will finish on 31 July after 10 years of exceptional service.
• Jason Sommer will be the new Director, Transformation & Investments. He is a highly experienced and successful transformational leader and joins from Sunsuper where he is currently Chief Financial Officer (including investment product and operations) and is a member of the executive team.

Ilaine Anderson and Sean O’Malley, who have both been acting in the roles of Super, Retirement and Platforms, and AMP Bank respectively, have been permanently appointed to their roles:

• Ilaine Anderson is Director, Super & Retirement. Ilaine is an experienced senior executive, who has been Director of Workplace Superannuation at AMP Australia and has held leadership roles in a number of industries including wealth management, professional services and HR.
• Sean O’Malley is Managing Director, AMP Bank. He has 25 years of experience predominantly in financial services and has held several senior positions within AMP Bank over the past five years, including leading Technology and Operations, and successfully delivering the Future AMP Bank – technology modernisation program.

Also on the leadership team:

• Edwina Maloney is the Director, Platforms, which is a new role comprising Wrap and SMSF platforms. Edwina will join from AMP Capital, where she is currently Global Head of Product and brings strong leadership, strategic capability, and an understanding of advisers from her experience promoting investment products at both AMP Capital and Perpetual.
• James Kent, Chief Technology Officer, AMPA, continues in his important role leading the strategic delivery, support and enhancement of AMPA’s technology, digital, data and analytics capabilities.

The extended leadership team also consists of Client Services led by Steve Vaid, and Adviser Distribution led by Nicole Mahan and four Group-aligned leaders across finance, people and culture, legal, and risk. Nicole will continue to play a critical role in business performance in line with her focus on AMP’s relationships with advisers.

Scott Hartley, Chief Executive Officer AMP Australia, said: “As well as bringing together an experienced leadership team with four new executives, we also have an updated operating model to deliver a flatter structure to enable empowered, distributed leadership. This will improve efficiency and ultimately the performance of the business by giving our leaders end-to-end operational accountability.

“The four new leaders will be in place by July this year. They bring the skills and experience needed to help AMP deliver the transformation of its business and will complement existing skills AMP has in its current leadership group.

“The new leaders have all worked in large institutions and small to medium sized businesses. They will bring a healthy perspective on how we ensure AMP Australia is a lean, efficient and competitive business.

“We’ve looked for individuals who are excited about the opportunities, have a firm grasp of the challenges we have as an organisation, and a strong sense of urgency about the changes we need to see in our business.

“I’m very pleased we are bringing in such well respected, talented executives, to help transform the business, and I am confident we now have the team to successfully deliver on the strategy.”

Matt Lawler takes over from David Akers as Managing Director, Advice. David has led the Advice business and AMP’s aligned advice network through a very difficult period of industry disruption and regulatory change, and has positioned the advice business well to capitalise on the opportunities for AMP and its advisers.

“David has led the business with strength, integrity and vision. With the transformation now well underway, it is the right time to transition to a new leader, who is well positioned to take the advice business through the next phase of transformation and growth.

“Ahead of Matt’s arrival, David will continue to lead the Advice business to maintain the momentum we have in our advice transformation, with the priorities for the business and the network remaining unchanged.”

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More than 80,000 of AMP’s women members accessed their super savings, with our research showing they’ve withdrawn a higher proportion of their balances than men.

This money provided much needed assistance at a time of considerable financial uncertainty, but we mustn’t lose sight of its impact on retirement savings.

We know women already have lower super balances. We also know they’re more likely to find themselves living below the poverty line in retirement.

And, with this quarter’s Financy Women’s Index showing a revised timeframe to economic gender equality of 101 years, it should be no surprise that women are generally more anxious about their retirement outcomes – one of the key findings from AMP’s latest Financial Wellness research.

While near-term COVID-19 challenges remain, the message I want to share for those women who have withdrawn funds as part of the early release program, is to take stock now, and start taking steps to rebuild your super balance.

Our super system is a purpose built, tax friendly way of building long-term retirement wealth. It’s designed around the concept of ‘compounding’, which dictates that through a sensible investment strategy, a little now multiplies over the years into much more.  This can have a profound impact on the size of retirement nest eggs and quality of life in later years.

Where do you begin to rebuild your super?

While you might not have spare funds available now, you can start building your knowledge of the super and retirement system.

The system can be complex, but many funds, offer education, support, resources and tools to help members – take advantage of their insights, resources and expertise to build your own knowledge. AMP, for example, has created an Insights Hub, full of resources which anyone can access. Encouragingly, this site was visited more than 380,000 times last year.

It’s also important to understand the different types of strategies and options available to increase your super balance. These will differ based on your personal circumstances, but include concessional (before-tax) and non-concessional (after-tax) contributions, spouse contributions, and government assistance.

Also, start the conversation about super and retirement with your family and friends… share your knowledge with your daughters, granddaughters and nieces.

On the surface there may be more interesting topics to discuss for those under 40 than ‘non-concessional contributions’, but let’s help ensure the sometimes harsh reality of opportunity lost doesn’t hit home for women when retirement is just around the corner.

In short, it’s never too early to start planning for retirement, and building – or rebuilding – your super balance.

By Ilaine Anderson, Acting Managing Director Superannuation, Retirement and Platforms

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Ilaine Anderson

AMP’s 2020 Financial Wellness research has found severe and moderate levels of financial stress are impacting 1.8 million Australian workers, with nearly half feeling financially stressed for an average of six and a half years or more. In total, 50 per cent of all Australian workers reported some level of stress about their finances.

The cost to Australia’s economy is $30.9 billion annually due to employee distraction and absenteeism – those severely and moderately financially stressed are ineffective at work for approximately 7.7 hours a week, and absent for a further 1.2 hours a week through sick days.

A systemic, long-term issue

The research, which has been conducted by AMP biannually since 2014, shows that financial stress has remained a systemic issue in Australian society. Those severely or moderately financially stressed have remained above or close to two million in every year the research has been completed, and the divide between the financially well and those stressed is getting wider.

Women continue to be more impacted

Approximately one in five female employees reported severe or moderate levels of financial stress in 2020, almost double the figure recorded for male employees (11 per cent). Younger women are particularly at risk, with 23 per cent of those aged 18 to 34 reporting severe or moderate levels of financial stress in 2020, almost three times the number of male employees (8 per cent) in the equivalent age group.

The impact of COVID-19

COVID-19 is amplifying financial anxiety for the 42 per cent of employees who perceive their finances to have been negatively impacted by the pandemic through business and employment disruption. These Australians report almost three times the financial stress levels of those who believe they haven’t been directly impacted by COVID-19. One in ten Australians, whose employment or business have not been impacted or in-fact benefited through COVID-19, are reporting a positive impact on their financial stress levels.

AMP’s modelling projects that if the impact of COVID-19 sees the number of people stressed increase by 10 points to 52 per cent, the additional cost to Australia’s economy caused by that stress could be up to $4.4 billion.

The leading cause of stress in Australia

Independent research confirms that financial issues are the top cause of stress among Australians, more so than any other trigger, including family dynamics and personal health^[1]. More than a third of Australians find dealing with money, or even thinking about it, stressful and overwhelming[2].

Further findings:

• Consistent with the impacts of COVID-19, the hospitality industry is experiencing the highest levels of financial stress, with 26 per cent of workers severely or moderately stressed. Retail is the second most affected industry at 23 per cent.
• Geographically, regional South Australia has the highest rate of severely or moderately stressed workers at 26 per cent in the country, with the Northern Territory second at 23 per cent.
• Financial stress is not exclusive to low income earners, with one in ten Australians who earn $100,000 or more experiencing severe or moderate financial anxiety.

AMP Director of Workplace Super Ilaine Anderson said: “Australians continue to suffer the debilitating effects of financial stress, which is taking a huge personal toll on mental and physical wellbeing, particularly for younger women and single parents.

“This is spilling into work with stressed employees worried and distracted, and not performing at the levels they’re capable of, or they don’t turn up at all. The combined effect is costing Australian businesses billions each year.

“While COVID-19 is understandably creating significantly more anxiety for those directly impacted and blurring work and home life, the research – conducted since 2014 – shows that financial stress remains a systemic issue in Australian society.

The importance of education

“We know those who feel in control of their money are measurably less stressed, happier and more productive in the workplace. We also know that well-defined personal and family goals, and a plan in place to achieve them, can provide comfort.

“But employees also require the knowledge and knowhow to achieve their goals. And while more employees today than in previous years claim to have good financial intentions, they still often lack the tools, support, information and opportunity to take action. Access to financial education is essential.

The role of employers

“The research shows that financial education is one of the most used employee benefits when available. In fact, employees place an average value of $1300 on financial education provided by employers.

“Yet only 10 per cent of employees report that they’re being offered this kind assistance by their employer.

“There is a very real opportunity for employers to offer more financial literacy and education programs to their people, and increase awareness if they already exist  – to help them understand and engage with their finances, set goals, put plans in place, and then achieve their desired financial outcomes through informed decision making.

“The benefits will be seen through improved wellbeing, a more present and engaged workforce and, ultimately, in the performance of their businesses and wider economy.”

AMP’s Financial Wellness programs

AMP’s Financial Wellness programs offer real support to our clients’ employees as part of our superannuation relationship. Employees have free access to education and insights to equip them with the knowledge and skills needed to manage money more effectively. AMP’s aim is to empower employees to make smart financial choices.

Good Shepherd partnership

AMP has partnered with the Good Shepherd to support those struggling with their finances before they find themselves in a financial crisis. Through a dedicated AMP line – 1300 054 500 – the program provides members of AMP employer super plans with access to free and confidential financial counselling services.

Seven tips to improve financial wellness

1. Take action – utilise online resources and education programs provided by your employer to improve your understanding of key financial drivers, including superannuation, debt and cashflow management, insurance and investment principles.
2. Set goals and put a plan in place to achieve them – connecting finances with goals helps us engage with our finances, and then having a plan to achieve these goals can significantly ease stress.
3. Create a budget that works for you – writing up a budget may take an afternoon out of your diary, but it will help you to more easily identify where there’s room for improvement. Then use one of the many budgeting apps freely available to track progress.
4. Consider rolling your debts into one – rolling multiple debts into a single loan can reduce fees and interest. It also provides greater visibility and control over your finances.
5. Set aside some emergency cash – an emergency resource of funds could give you peace of mind and reduce the need to apply for high-interest borrowing options should you be faced with an unexpected expense or new circumstances.
6. See if you can get a better deal with your providers – you more than likely have several product and service providers, and savings can be made by switching providers, which over time can amount to considerable benefits.
7. Don’t be afraid to seek financial assistance – if you are struggling to make repayments, you may be able to seek assistance from your providers by claiming financial hardship. All providers must consider reasonable requests to change their terms in instances where you may be suffering genuine financial difficulties. In addition, you can talk to a financial counsellor (free of charge) at the National Debt Helpline by calling 1800 007 007.

About the research

AMP’s Financial Wellness research is conducted by The Behavioural Architects, a global insight, research and strategy consultancy, specialising in the application of behavioural science. Insights were collected from more than 2,100 Australian employees between June and July 2020 and weighted to reflect Australia’s broader workforce, based on data from the ABS.

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[1] Australian Psychological Society (2015): Stress & wellbeing: How Australians are coping with life
[2] Australian Securities & Investments Commission (2018): Australian financial attitudes and behaviour tracker

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Ilaine Anderson

New research from AMP has revealed parents worry more about money in the lead up to having a baby than any other time.

The results from the AMP’s Financial Wellness study revealed planning for a baby causes greater financial stress than having a child, with 71 per cent of those expecting a baby in the next 12 months experiencing financial stress, compared to 45 per cent of those who have had a child.

Interestingly, only 28 per cent of people felt financially secure the year before they had a baby, this improved to 54 per cent the year after.

The research highlighted the leading role employers play in helping reduce financial stress for parents-to-be, by communicating parental leave benefits as early as possible and helping staff engage with their super.

When it comes to financial stress for new parents, the AMP study found:

• One-in-five primary caregivers takes employer-funded leave but doesn’t know the specifics of their benefits
• Half of the parents-to-be taking maternity leave have no idea what happens to their super
• 67 per cent feel they shouldn’t have to think about super during parental leave, and
• 68 per cent believe being paid superannuation during parental leave will bring peace of mind.

AMP Director of Workplace Super Ilaine Anderson said: “Having a baby is one of the most joyful times in your life; but planning your baby budget can be one of the most stressful.

“You can understand why expectant parents are stressed about money.  Planning for a baby often means looking ahead to a time where you are earning far less and spending far more.

“The study found financial stress for expectant parents can impact psychological wellbeing, and for pregnant women, compound the stress they are already feeling ahead of the birth of their baby.

“Employers can help reduce this stress by providing a checklist of their parental leave policies and the government benefits which may be available to them well before the baby is born.”

“They can also help their employees understand the longer-term implications to their retirement savings by taking extended leave, and the measures they might be able to take to help mitigate negative impacts,” she said.

New parents confused about super

The Financial Wellness research showed super was not top of mind for those impacted by parental leave, with 68 per cent saying super is the last thing on their mind when having a child.

Ms Anderson said it’s important for employers to lead the way in helping their staff engage with super.

“Saving for your retirement may seem like the least of your worries when preparing for a baby.  However, it is important for new parents to consider the impact parental leave will have on their overall super balance.

“Women still retire on significantly less super than men, due to a range of factors, but taking time out of the workforce to have a family is one of the main reasons for the gap.

“Our research showed employers can help parents by including superannuation payments in paid parental leave or by giving staff information about reallocating some of their pay into super,” she said.

How employers can help ease financial stress for parents expecting a baby:

• Communicate parental leave policies early in the pregnancy to help parents plan ahead
• Offer flexible working arrangements to help women during pregnancy and when they return from work
• Help employees understand the impact parental leave has on their super
• Consider including super payments in paid parental leave, and
• Help employees understand how they can reallocate some of their pay to super.

Additional findings on expectant parents’ attitudes towards super:

• 67 per cent were unaware super is not included in government parental leave schemes
• 71 per cent were unaware employers are not required to pay superannuation to employees on unpaid parental leave
• 83 per cent were unaware employers are not required to pay super for employees on paid parental leave, and
• 89 per cent were unaware, even during periods of unpaid parental leave, some employers will still pay superannuation.

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Two in five Australian workers experience financial stress during their careers.

AMP’s Financial Wellness report has found financial stress impacts two in five Australian workers during their careers, with nearly half feeling financially stressed for an average of six and a half years or more.

According to the report, there are currently 2.44 million Australians suffering from financial stress and this is having a significant impact on the economy, costing Australian businesses an estimated $31.1 billon per year in lost revenue.

Employees troubled by their financial circumstances take an extra 2.4 sick days per year and spend almost an hour per week dealing with money problems at work.

When it comes to the Australians most impacted by financial stress, the AMP study found:

• Women are more affected than men, with 24 per cent of women found to be in financial stress compared with 14 per cent of men
• Brisbane and Adelaide are the two cities worst impacted, with 25 and 22 per cent of workers respectively reporting financial stress
• Those who earn between $50,000 to $74,999 are the most likely to feel financially stressed.

AMP Director of Workplace Super Ilaine Anderson said January and February can be the worst months for financial stress.

“As the holiday season comes to an end, and credit card bills start to roll in, many Australians will be starting the new year under significant financial pressure.

“While many people think money worries are a personal issue, our research shows being financially stressed spills into your working life, increasing absenteeism and impacting productivity,” she said.

The value of goal setting

Ms Anderson added: “The research shows if people have well-defined goals and a plan in place to achieve them, they have greater peace of mind. Goals help lift people above the day-to-day expense cycle, allowing a more ‘in-control’, longer-term view.

“People don’t wake up and think ‘I’m going to get a home loan’ – it starts with the desire, or a goal, to buy a house. Connecting finances with goals helps us engage with our finances, and then having a plan to achieve these goals can significantly ease stress.”

How employers can help

Ms Anderson commented employers can play an important role in promoting financial wellness.

“The research found flexible working hours and the ability to work from home improved employee performance, engagement and financial wellness. Reducing the stigma around financial stress is also important, as many of those surveyed cited embarrassment and guilt as a major reason for not tackling their financial woes.

“We need to make sure talking money isn’t seen as taboo and implement financial literacy campaigns within our businesses to help employees achieve their financial goals,” said Ms Anderson.

Additional findings

• The Financial Wellness Index, which measures how employees perceive their current and future financial situation, found 5 per cent of Australian workers are severely financially stressed, 14 per cent are moderately financially stressed, 35 per cent are mildly financially stressed, 46 per cent are financially secure.
• Of Australia’s five largest capital cities, Brisbane is the most financially stressed, with 25 per cent of workers in this region experiencing financial stress. This is followed by Adelaide (22 per cent), Melbourne (20 per cent), Perth (17 per cent) and Sydney (16 per cent).
• Financial stress is more prevalent in certain industries. Transport, postal and warehousing workers were most financially stressed with 25 per cent of workers experiencing money problems. This is closely followed by both administrative services and hospitality (24 per cent), financial and insurance workers (21 per cent) and both retail and healthcare and social assistance workers (20 per cent) who were financially stressed.
• The demographics showing the highest incidence of financial stress include single parents (35 per cent), those living in shared accommodation (31 per cent), people living in regional Queensland (28 per cent) and women (24 per cent).
• The research showed no income group is immune from financial stress. Those earning between $50,000 – $74,999 reported the highest level of financial stress (26 per cent), followed by $25,000 – $49,999 (24 per cent), $75,000 – $99,999 (16 per cent), $100,000 – $149,99 (12 per cent) and $150,000 and above (11 per cent).

Download a copy of the Financial Wellness report.

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