Is MySuper worth it?
Workplace Super Specialists Australia (WSSA) has raised the question of whether MySuper has actually benefitted members as there have been huge costs associated in the compulsory transfer.
During the second half of 2016, superannuation members who have not made an investment choice within their employer fund will be transferred to MySuper, prior to the 1 July 2017 deadline.
WSSA chief executive, Douglas Latto, said there had been considerable costs to the funds in the transfer and the costs had mostly been passed onto members through a levy.
"Both funds and members need to review whether MySuper has indeed been the solution they were looking for," Latto said.
"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 also noted that though adviser commissions had been removed on death and disability insurance cover, it did not always lead to a decrease in premium rates.
"Are the providers really passing this saving on to members?" he said.
Recommended for you
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
Former chair of the House of Representatives’ Standing Economics Committee, Tim Wilson, is planning a return to politics after losing his seat in the 2022 federal election.
Morningstar is going to offer research ratings of funds in the $3.5 trillion superannuation sector for the first time in response to demand from financial advisers.
Treasurer Jim Chalmers has opened a consultation into the design of the annual superannuation performance test, canvassing views on a range of reform options.