MySuper lifecycle options not for everyone: AusSuperBY JAMES FERNYHOUGH | TUESDAY, 21 JAN 2014 12:15PMMySuper lifecycle products are not the best option for super funds whose members have lower balances, according to AustralianSuper investment manager Alistair Barker. Related News |
Editor's Choice
Iress says its GitHub user space was breached
|Iress has disclosed to shareholders that its private user space with software code repository GitHub was subjected to a cyber-attack over the weekend.
Federal Court rejects two CBA class actions
|The Federal Court shut down two class actions against Commonwealth Bank of Australia (CBA) relating to anti-money laundering and counter-terrorism financing (AML/CTF).
Chalmers makes bold inflation prediction
|The Federal Treasurer says he believes inflation will come back into the Reserve Bank's target range sooner than predicted.
UniSuper restores online services, app
|UniSuper's systems are back online, after close to two weeks of disruption.
Products
Featured Profile
Robert De Dominicis
CHIEF EXECUTIVE OFFICER
GBST HOLDINGS LIMITED
GBST HOLDINGS LIMITED
It was during a family sojourn to the seaside town of Pescara, Italy, Rob DeDominicis first laid eyes on what would become the harbinger of his future. Andrew McKean writes.
It appears that two of the biggest guns in the industry are really dancing the same tune. Out with a one size fits all approach and in with a trustee tailored super default.
How do trustees separate default members using factors beyond just age, so that Barker's low retirement balance/age pensioner members are on a 'growth' glide path for longer and his Self Funded Retirees a more conservative path? Holzberger's approach of using current balance, as he points out, only partly does the trick, particularly for younger members. Even if they have similar balances now, different wages, hence contributions, up to retirement will lead to different retirement prospects. Surely retirement balances should be projected as a factor, along with age, to set lifecycle criteria.
It appears as though the biggest potential benefits of the MySuper changes are yet to come.