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NEWS > SUPERANNUATION
New cost estimates see MySuper equal SuperStream
Friday, 17 February 2012 12:25pm
By Melanie Timbrell  |  In Superannuation

The costs of implementing MySuper will equal the costs of SuperStream, according to estimates delivered in a joint Ernst & Young and Association of Superannuation Funds of Australia (ASFA) executive survey.

Both MySuper and SuperStream are expected to attract just under 40% of estimated costs, indicating a fundamental shift in thinking from 12 months ago, when the same survey found executives anticipating SuperStream would account for most of the cost incurred and MySuper was perceived as "just another product", according to the research.

While technology and infrastructure were estimated to comprise 35% of costs incurred, business processes and people was ranked close behind on 26% with member communication at 11%.

The surveys, conducted 12 months apart involved 34 executives representing industry, retail and corporate funds, in addition to SMSF administrators, public sector and fund administrators.

Despite rhetoric over the impact of account consolidation as part of Stronger Super, 70% of executives involved in the survey said they expected to lose less than 10% of their members due to account consolidation, although, "given the high number of multiple member accounts, the reality is likely to be significantly higher in some instances," said Graeme McKenzie, EY's oceania assets management leader.
 

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