National Australia Bank Sees Pensions Business As Route To Recovery

Anna Hallissey

24 March 2014

Following a turbulent 2013, aims to get back on its feet with a push in retirement products.

Launched by the firm’s wealth management unit MLC, the Let’s Save Retirement campaign will capitalise on the country’s approcimate A$1 trillion ($905 billion) retirement savings gap, the firm said in a statement.

According to Bloomberg, NAB is trying to claw back 2013’s losses, where profits before exceptional items at the bank’s wealth unit fell 13 per cent to A$482 million in the financial year ending 30 September. The firm had a total loss of 1 per cent for the year.

This was at a time where other wealth units prospered, both Commonwealth Bank of Australia and Westpac Banking posted profits last year.

Head of NAB’s wealth business Andrew Hagger reportedly said problems MLC now faces could be different if its acquisition was handled differently upon finalisation in 2000.

“In hindsight, a closer integration with the bank soon after the acquisition of MLC, would have put the business in a stronger position,” he told the news service.

However, a reshuffle of the wealth management leadership team and the pension campaign may help to change the firm’s fortunes.

Set to be rolled out across Australia in an ostentatious fashion, not limited to an interactive diorama on the future of retirement at the Australian Museum and a multi-media advertising drive, the Let’s Save Retirement campaign aims to encourage individuals to seek financial advice to help them grow, maximise and protect their retirement savings, including super.

"This is a national issue and we're committed to being the champions of retirement and activists of change,” said Hagger, as the average super balance for Australians aged between 60-64 is currently $155,400, while today's retirees require at least A$430,000 per person.