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Equipsuper pension portfolio bypasses advice
Equipsuper will launch a retirement income stage version of MySuper, with model portfolios for members not seeking advice.
“While we encourage members to seek professional advice as they head into retirement, the reality is that only two or three out of every ten Australians seek professional advice,” CEO Danielle Press said
Equipsuper MyPension, which comes out on 1 July, comes with an account based pension with a built-in strategy based on the financial advice clients would normally receive.
“It is a retirement income package principally designed for those members who plan their retirement without seeking advice,” Press said.
Designed to be a default pension fund, the product will suit those with a super benefit of between $100,000 to $600,000, own or almost own their home, and where super is their largest asset other than their home.
The member’s benefit will be split between three of the fund’s current investment options: cash, conservative and growth, based on the “three-bucket strategy” financial planners use.
Cash will provide income for the short term, conservative will help stabilise medium-term volatility and growth will extend the longevity of the pension.
The investment option allocations for members will be rebalanced each year.
“Generally, our members indicated they did not want to hand their money over in return for an annuity type income stream. They were concerned about the loss of flexibility and control of capital if their needs changed and, if they died early, their inability to pass on any benefits to their dependants or surviving family members,” Press said.
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The fund has achieved double-digit returns amid market volatility, reinforcing the value of long-term investment strategies for its members.
Australian super funds notched a third consecutive year of strong returns, with the median balanced option delivering an estimated 10.1 per cent over the 2024-25 financial year, but an economist has warned that the rally may be harder to sustain as key risks gather pace.
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