What is MySuper?
MySuper products are default superannuation products that employers pay compulsory SG contributions into on the behalf of their employees.
Modern super funds offer members numerous choices of investment, insurance, advice and other services. The choices available are so extensive that there is almost nothing an investor could want that couldn't be found in a modern superannuation fund.
While most members understand the importance of a superannuation fund, most members want a simple no-nonsense super fund that wont force them to make decisions about investment and insurance options?
The government in 2013 introduced MySuper, a system that allows superannuation funds to offer products that are much simpler than the main funds many members were used to dealing with. The essence of MySuper products is that they contain just one investment choice and a standard cover insurance arrangement rather than regular funds that offer dozens of investment and insurance choices.
MySyper products have other advantages too: as simpler products they should have lower fees. Also they provide simpler Product Disclosure Statements than those regular funds. MySuper products simplify superannuation funds but they do not dumb it down. They will still offer financial advice which will be paid for by the fees the members already pay.
This technical resource is intended for the use of financial advisers only. It is current as at the date of publication but may be subject to change. This publication has been prepared without taking into account a potential investor's objectives, financial situation, needs or objectives. Before making a recommendation based on this material, you should consider its appropriateness based on the client's objectives, financial situation and needs. Rainmaker Group is not a registered tax agent under the Tax Agent Services Act 2009. Your client should refer to a registered tax agent before relying on information published herein that may impact their tax obligations, liabilities or entitlements.
Last modified: Wednesday, November 4, 2020