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Tuesday 30 October 2007
Westpac and BT launch next generation super offer to make super easier to own and control
Addressing Australians' chronic lack of ownership when it comes to retirement savings, BT Financial Group (BT) and Westpac Banking Corporation (Westpac) today launched a new concept in superannuation that combines the best of banking and wealth management to make super easy to use and as visible as everyday online banking.
BT Super for Life is the first major super initiative to be jointly executed by BT and Westpac and the first of its kind to fully integrate online accessibility, flexibility and portability in one super solution to take from job to job and into retirement.
With no hidden fees or commissions, simple investment choices, an integrated insurance offering, the functionality to pay an advice fee for service, and even the ability to use Westpac credit card points to contribute to super, BT Super for Life provides a compelling alternative to traditional retail and industry super funds.
BT Super for Life has no establishment fees, no contribution fees, no withdrawal fees, no switching fees, no termination fees and does not pay commissions.
Westpac Chief Executive Officer David Morgan said BT Super for Life has the potential to revolutionise the way Australians think about and engage with their super.
"Too many Australians aren't prepared for their future because they have no ownership, visibility, control or interest in one of their most important assets - super," Dr Morgan said.
"There is now more money sitting in super than traditional bank accounts, and yet over $9 billion in super remains lost and many Australians don't know how much they have saved for retirement - let alone how much they need.(1)
"We want to be an organisation leading the way in helping Australians to save more and save earlier, and this can only be done if our customers take personal ownership of this significant asset.
"Our challenge was to create a solution for customers that made managing super and retirement incomes as easy and accessible as everyday online banking.
"By providing customers with more control and greater access to their superannuation, we believe we can overcome the lack of ownership and general disinterest that are key barriers to adequate retirement savings, particularly for younger Australians.
"Every time a customer checks their bank accounts online they'll see their super balance, and for many Australians they'll be reminded that super is one of the largest assets they have - what better way to make super engaging and relevant," Dr Morgan said.
BT Super for Life combines the best of banking and wealth management to make it easier for customers to take control and stay in touch with their super every time they change jobs and manage their income in retirement.
BT Chief Executive Officer, Rob Coombe said that something had to be done to give Australians a greater sense of ownership and control of their super.
"If we are ever to encourage people to take control of their future, issues of ownership and relevancy need to be overcome for those in their 20s, 30s and even 40s who feel like retirement is still an age away.
"For many workers under 34, their super balance represents the largest chunk of money they have in one place - and yet, a recent Galaxy poll showed that almost half of the people in this age group either don't think about their super at all, or at the most once or twice a year.(2)
"Furthermore, over half of those in their mid 30s or younger don't know the names of the companies that hold their super and more than half a million people think it's likely they've already lost some of their super.
"Far too many people have completely lost visibility of their super. The research also showed that over half of people under 34 don't know how much they have in super and a further 25 per cent couldn't estimate their super balance to the nearest $1,000.
"Super represents almost one in every ten dollars that we earn - so it doesn't make any sense that so many people just kiss it good bye when they change jobs.
"Imagine losing a few hundred dollars while on a night out and not even reporting it to the police - or having thousands of dollars in a bank account when you don't know the name of the bank.
"By putting super on the same page as everyday online banking we're raising its visibility - it's about delivering the next generation in superannuation and pension products to make it easier for members to exercise choice and take control," Mr Coombe said.
Mr Coombe added that every feature and function of BT's new super product, from the online integration to the simple product offer documents, has been designed to make super easy to understand, easy to use and a part of everyday money management.
"Furthermore, by introducing 'Lifestage' funds we've taken the complexity out of investment portfolio selection and integrated a sustainable investment philosophy to address the changing concerns of our customers.
"The easy online application process means customers can open an account in as little as ten minutes, top up their super from their Westpac bank account at the click of a button and for those in retirement, make withdrawals at any time they like.
"The increased focus on superannuation on the back of the recent Simpler Super legislation has had a real impact on many Australians, but in our experience, still too narrow a segment of the population shows interest in super.
"Addressing the engagement imbalance, we are delivering the next generation in super product to make it easier for Australians to own their super and achieve the life after work that they've always dreamed about," Mr Coombe said.
BT Super for Life members can choose from three super account types - Savings, Transition to Retirement and Retirement, all with a low management fee of just 0.99 per cent and a flat $5 per month administration fee*. BT Super for Life also offers competitive standard insurance cover and the ability to customise insurance to meet members' specific needs.
* Transaction costs may apply.
1 Source: Australian Tax Office, January 2007
2 Galaxy Omnibus Research, October 2007
Important Note:
BT Funds Management Limited ABN 63 002 916 458, RSE No. L0001090 is the trustee of BT Super for Life, RSE No. R1071221. A Product Disclosure Statement (PDS) is available at www.btsuperforlife.com.au. You should obtain and consider the PDS before deciding whether to acquire this product.
An investment in BT Super for Life is not an investment in, deposit with or any other liability of Westpac Banking Corporation ABN 33 007 457 141 (the Bank) or any other company in the Westpac Group. It is subject to investment risk, including possible delays in repayment of withdrawal proceeds and loss of income and principal invested. The Bank is not the issuer of BT Super for Life. Neither the Bank nor any other company in the Westpac Group stands behind or otherwise guarantees the capital value or investment performance of the investment options in BT Super for Life.
This information has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation and needs.
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