Allocated pension comparator launched
The Australian Securities and Investments Commission (ASIC) has released a calculator for consumers to compare allocated pension products, and Chant West and SuperRatings expect to follow suit by developing extensions to their superannuation comparators in the new year.
ASIC executive director of consumer protection Greg Tanzer said the calculator is provided on the FIDO website and is designed to help consumers compare allocated pensions in preparation for retirement.
The tool demonstrates the effect on an allocated pension of changing fees and investment strategies and is accompanied by a guide that explains how allocated pensions work, how the calculator works, and outlines assumptions.
SuperRatings managing director Jeff Bresnahan said his firm already produced special reports comparing allocated pension funds but was also looking to make a comparison product more widely available in the first half of 2006.
“We’ve got the database set up to roll down that route … it’s a growth area going forward so it’s pretty important that people have accurate data,” he said.
Bresnahan said a SuperRatings tool would be offered through financial advisers rather than direct to consumers.
“Consumers want free information and it’s hard to design a product where you can give information away for free,” he said.
Chant West is also planning to release a calculator to compare allocated pensions in the first half of next year, according to principal Warren Chant.
Chant said it was “not a big leap” for his firm to extend its current superannuation research to investigate allocated pensions.
“Generally speaking, if you’ve got the same investment options fees are generally slightly different, but not hugely. There’s no insurance, so it’s a lot simpler. And there is some slightly different information on minimums and maximums,” he said.
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