Super switch benefits questioned
Workplace Super Specialists Australia (WSSA) is questioning the benefits of MySuper, given its enormous cost.
In the second half of 2016, superannuation members that have no investment choices within their employer fund will be transferred to MySuper, ahead of a 1 July 2017 deadline.
The cost of the compulsory transfers to the funds have been enormous, and are mostly being passed onto members through a levy.
“Both funds and members need to review whether MySuper has indeed been the solution they were looking for,” says WSSA chief executive, Douglas Latto.
“We need to consider MySuper in terms of what advantage these investment approaches give to members and indeed, whether they are good for them.”
Latto noted that when adviser commissions were removed for death and disability insurance cover, a decrease in premium rates did not always follow.
“Are the providers really passing this saving on to members?” he asked.