Future thinking should be shared. With that in mind our team publishes insights weekly to help keep you in the (k)now.


Hewison Private Wealth - Insights
Hewison Insights

MySuper not Super for everyone

Glenn Fairbairn
Director/Private Client Adviser
3 Jan 2011

In December the Government released its response to the proposals of the Cooper review. The government announced that it accepted 139 of the 177 proposals, including the proposal to introduce a MySuper fund.

MySuper is a low-cost and simple superannuation product that will replace existing default superannuation funds from 1 July 2013. Some of the standards that MySuper products will have to meet include:

  • No entry fees, with exit fees limited to cost-recovery;
  • A ban on commissions;
  • A single investment strategy set by the trustee; and
  • New standards around the payment of performance fees to fund managers.

This initiative is likely to be an ideal structure for younger people with moderate superannuation balances as it will ensure their benefits are not eroded by excessive fees and/or adviser commissions.

However one of the drawbacks of MySuper is that the fund will have a single, diversified investments strategy. Unfortunately this places everyone in a one size fits all model. Whilst this may be appropriate for some, it is our belief that as an individual’s superannuation balance increases that control and flexibility is paramount.

As retirement planning becomes a higher priority it is essential that you have the capacity to construct an investment strategy that is specifically tailored to meet your individual requirements and objectives. Unfortunately MySuper does not provide this flexibility.

It is fair to say that MySuper, whilst a good initiative, is not the ideal structure for everyone.

Hewison Private Wealth is a Melbourne based independent financial planning firm. Our financial advisers are highly qualified wealth managers and specialise in self managed super funds (SMSF), financial planning, retirement planning advice and investment portfolio management. If you would like to speak to a financial adviser on how you can secure your financial future please contact us 03 8548 4800, email info@hewison.com.au or visit www.hewison.com.auPlease note: The advice provided above is general information only and individuals should seek specialised advice from a qualified financial advisor. The views in this blog are those of the individual and may not represent the general opinion of the firm. Please contact Hewison Private Wealth for more information.