MLC Super adapts MySuper offering
Members currently invested in MLC Super’s MySuper option have been moved to a new default option, as the fund implements major changes to make their MySuper offering better reflect members’ needs at different life stages.
Members aged under 55 would have a long-term allocation of 85 per cent growth assets and 15 per cent defensive assets under the new model, while those approaching retirement, aged 55 – 64, would have their growth assets gradually decreased in favour of their defensive counterparts.
For those hitting retirement age, meaning 65 and over, the MySuper option would shift to 70 per cent growth and 30 per cent defensive assets. This was the structure of MLC Super’s current MySuper product.
MLC general manager of corporate super, Helen Murdoch, said that the changes followed research by the fund finding that many Australians took a passive approach to managing their super. Forty per cent of Australians were found to have never reviewed their super fund strategy, while 73 per cent didn’t know the right risk profile for their age.
The changes would help remedy the detriment this could have on super balances, as members automatically would shift to investment strategies suited to their life stage.
The transition of all members to the new option was completed from 22 – 25 March, with all assets in the previous MySuper offering being transitioned at the same time. Members didn’t incur a transaction cost.
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.