The recent advertising campaign by Australia's industry superannuation funds has fuelled misconceptions about the value of advice in the community, according to ING Australia chief executive Paul Bedbrook.
Speaking at yesterday's Association of Superannuation Funds of Australia (AFSA) lunch, Bedbrook said the campaigns by the industry superannuation funds focused on the cost rather than the value of advice.
"The advertising campaigns convey the message that advice is not necessary to superannuation allowing members to set and forget their superannuation is not the answer. That is bad advice," Bedbrook said.
Advice will play a critical role in addressing Australia's retirement gap and its underinsurance problem, he said.
While the payment of advice was controversial, Bedbrook said as long as fees were properly disclosed then cost should not be an issue.
"Parliament's recent review on the superannuation industry did not recommend a ban on fee commissions as lobbied by the industry funds," he said.
"Many people can only afford to pay fee commission rather than a fee-for-service."
First State Super chief executive Michael Dwyer hit back at Bedbrook's comments.
"I don't know what planet [Bedbrook] is living on," Dwyer said.
"A recent shadow shopping survey by ASIC showed that one in five superannuation financial plans were sub-standard."
