The government has just announced the passes and fails amongst the multitude of MySuper investment options. It is a fact that the government is still trying to fix super after almost thirty years of regulation and then more regulation. So, what’s so different about this time?
Well one would have to say that the current approach by the government in promoting the MySuper model in controlling the performance of your super is a step beyond their role as the legislator and regulator of what is legal and what is a crime? It appears to be a statement that Australians are unable to optimise their super asset in developing it as a future income in retirement. Is MySuper the long term solution to managing an asset that is currently at $3 trillion and growing fast?
Is the MySuper investment default model the best option for your asset and is the dependency on measuring performance based on current costs and historical returns the best way to determine the future value of your asset?
Are our politicians tremendous commercial managers in shaping a much improved financial services industry? Are cost and historical investment returns a reliable basis to indicate what needs to be a future and sustainable performance? Is the government in a position to provide an explanation on why a historical investment performance is a statement of current capability in terms of asset management? Is any MySuper investment default at all transparent in how the asset is invested and what are the long term risks involved in various asset classes and geographies? Does any individual even examine the asset allocation of MySuper and consider the variation in geographical allocation across different platforms?
The lack of explanation, justification and therefore transparency around MySuper as a superior investment strategy is surely apparent to everyone. Or is it?
Having been instrumental in developing SuperWiser to its current state of readiness (so after nearly 7 years in development), I do not expect SuperWiser will ever recommend you to optimise your super by investing in a MySuper investment option. SuperWiser has a number of underlying advantages which make the application superior to other personal service models:
- It is an online application and thereby available 24/7.
- SuperWiser works by way of an algorithm developed by an external actuary.
- SuperWiser has a backend, known as Module Manager containing details of some 40 products and all the details to enable a mathematical comparison depending upon your circumstances.
- Independently of SuperWiser, the license holder, AXIS Financial Group Pty Ltd, AFSL 233680, carries out an in depth assessment of every product within SuperWiser’s module manager around product capability, based upon optimising super as a projected income in retirement.
- SuperWiser does not need anyone else’s permission to service you as it is your decision to participate or not.
- Should you need some help in progressing within SuperWiser, there are a number of access points available if you need an adviser intervention.
- SuperWiser provides ongoing advice within a service model designed to encourage or remind you to pay attention to your super at critical points in time.
- As SuperWiser is an online application with all the benefits of technology, the application offers a solution to everyone at a very affordable cost: full personal advice around your super for $220 inclusive of GST
SuperWiser Works For You
There is no product involvement or influence with SuperWiser and the sole intention is in offering a digital service interface to all individuals in need of super advice. However there are features that are very supportive and applicable to all and then there are individuals who have much more specific requirements.
SuperWiser as it is designed does not do pre-retirement planning and does not compare pension products as yet. SuperWiser’s current focus is on the biggest proportion of employees who are accumulating their super assets as opposed to employees planning their imminent retirement.
As you progress through the application, SuperWiser will illustrate and further tailor a comparison between your current strategy and what you could do for yourself, described as your proposed strategy. Your proposed strategy might require a change in product and, as a minimum, will require a change in how you use the features available within your product.
SuperWiser finalises a personalised comparison between your current and proposed strategy before you have to actually pay anything. If you want to see the detail of your new proposed strategy, you need to pay a one-off fee. Implementing the proposed strategy is included in this fee.
After payment, you do have the opportunity to modify your strategy before proceeding to implementation. SuperWiser does not just give you a singular product recommendation, should you be advised to move to another product. It informs you around the top three products and the comparable projected income in retirement for each product. As this is a projection, common sense prevails where the variation in projected income in retirement between products is, say, minimum.
In effect, you will find yourself making a very informed decision.
When Would SuperWiser be Appropriate For Me?
SuperWiser is most certainly worth a look for anyone who has been employed for say around 5 years and the application will guide you around what is in it for you and you are able to easily consider if the value of the advice is far in excess of the cost.
Traditionally, it may have taken some 15 to 20 years for the older generation to accumulate $100,000 in super but nowadays, with the current level of super contribution and increases in wages from the early 1990’s through till now, that period of time should be at most about 10 years. Should you now be in full time employment for 10 years but still well short of $100,000, there may well be a reason. Maybe you participated in withdrawing super during the pandemic?
SuperWiser is positioned to make you think about your super and how important it will be to you. Life passes very quickly as some people already know and it is good advice to plan your super as early as possible as distinct from ignoring super as a serious wealth creation exercise for the first 20 years of your career.
Complete a free Super Review to gain perspective around the possibilities.