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Mercer gets APRA approval for MySuper offering
Mercer has been authorised by the Australian Prudential Regulatory Authority (APRA) to provide a MySuper product from the 1 December this year, with default members set to be transferred from 1 January 2014.
Mercer has dubbed its MySuper offering ‘SmartPath'. It stated that members of its Mercer Super Trust who have superannuation contributions invested in its default investment option will be switched to SmartPath from the start of next year unless they choose to opt out of the change.
Mercer Financial Services Business Leader Ben Walsh said SmartPath would contain a whole-of-life investment strategy which would group members in five-year age bands and offer lower fees for older members.
Walsh said these were designed to adapt to member's circumstances as they aged and to prevent older members subsidising younger members who may access riskier assets with higher investment costs.
He also stated the product would continue to offer life-cycle investment management past retirement age, exceeding the age limit requirement of the MySuper legislation.
"We know around two thirds of individuals' retirement income will come from returns earned during the post-retirement phase. We therefore believe it is important for retirees to maintain some exposure to growth assets," Walsh said.
AUTHOR
Jason Spits
Jason has been writing on financial services since 1999 and has worked for on a number of trade media titles in both a full time and freelance capacity. He joined Money Management and Super Review in 2013 in the role of Senior Journalist.
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