MTAA Super has announced an administration fee reduction of 10 cents a week, bringing the weekly rate down to $1.50, from the start of February, saying it will result in a six per cent annual saving for members.
The fund also announced the removal of exit fees payable on amounts rolled out, as well as a fee reduction for pension members. Asset-based administration fees for pension accounts would see a 33 per cent reduction to 0.10 per cent, while the fee cap on pension accounts would be changed from $300,000 to $450,000.
“Our members are at the centre of everything we do, and we are kicking off 2019 with a fee reduction for all fund members,” MTAA Super chief executive, Leeanne Turner, said when announcing the changes.
“Raising the fee cap on pension accounts also ensures pension members with lower balances receive great value, and in some cases will be up to $150 a year better off. Keeping fees low for our members is a key priority.”
The proposed reforms have been described as a key step towards delivering better products and retirement experiences for members, with many noting financial advice remains the “urgent missing piece” of the puzzle.
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.