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 |
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A single decision can change your life, and that's exactly what Centuria Capital joint chief executive Jason Huljich learned when he came to Australia in the 1990s. Eliza Bavin 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.