Industry fund UniSuper plans to launch an in-house financial planning business later this year that will adopt a fee-for-service model.

The plan has been approved by the board and UniSuper will now move to expand its graduated advice model, UniSuper executive manager of marketing and business Paul Murphy said.

"We intend to launch a full service financial planning business with a focus on retirement planning, estate planning and insurance," Murphy said.

"We're also looking at expanding from super more generally into wealth management."

The fund currently uses three national planning groups including Industry Fund Financial Planning, Hillross Financial Services and Monitor Money.

In Queensland, UniSuper refers members to QInvest. The Shadforth Financial Group provides services to its members in Tasmania and Victoria.

A UniSuper spokesperson said the financial planning business would first be rolled out in NSW and Victoria and then throughout other states.

Staff will be added as demand requires. A name for the division was still a work-in-progress.

According to Murphy, the move was made partially due to regulatory changes.

"There has also been a big spike in demand for advice from members. Our members often have big balances and there is a limit about how you can advise someone about their super," Murphy said.

UniSuper's current advice model offers limited advice and provides information tools to educate members.

"We try to deliver a service that caters to different members' needs at different phases of their life. However, we don't believe the answer is to put everyone into an expensive planning channel. We also think that empowering people to make decisions for themselves is also important," Murphy said.

UniSuper runs a referral process to external planners when members have broader needs, Murphy said.

There was no expectation of backlash from the retail sector as a result of this move.

"We have a dedicated market and we're not planning on launching ourselves more generally. It is more directed at helping members to achieve their requirements," the UniSuper spokesperson said.

Unisuper chief executive Terry McCredden, who joined the fund mid last year, has experience in establishing financial planning businesses.

In 2002, while employed as Telstra Super's chief executive, McCredden set up Telstra Super Financial Planning.