Mine Super cuts fees, updates investment options

Mine Super is reducing the administration fees members pay next month as it moves forward with its merger with TWUSUPER.

Effective May 20, the industry fund said administration fees will be lowered 25% from $52 to $39 per year for super members due to the upcoming merger which will "... build scale and spread our costs over a bigger membership base."

The fund will also offer two new pre-mixed investment options to its members - a defensive option and moderate option. Both will also be offered to pension members.

The defensive option has a "medium level of risk" and includes assets like cash and fixed income. It also has some growth assets like shares and property.

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Over a 20-year period, its estimated there may be two to three years of negative returns.

The moderate option is designed for those who want a diversified portfolio with both growth and defensive assets.

It's a "medium to high-risk" investment that over a 20-year period, there may be four to five years of negative returns.

Mine Super will also close its term deposit investment option as well as its remaining conservative balanced investment option for pension members. It closed this option for members in accumulation in May 2023.

"The Term Deposit option has been closed due to the associated complexity in administering the product, combined with a low adoption rate," a Mine Super spokesperson said.

Meanwhile, Mine Super is simplifying its Lifecycle Investment Strategy from 16 stages down to three.

From May 20, members under the age of 50 continue to be invested in a high growth strategy, however, members aged 50-54 will be invested in growth, and those aged 55 and above in balanced.

Mine Super will also soon change its default insurance offer for new members.