Calculate fees impact on super – AIST
Fiona Reynolds
Any snapshot of superannuation outcomes will need to take account of both fees paid to members and the age pension, according to the Australian Institute of Superannuation Trustees (AIST).
AIST chief executive Fiona Reynolds said her organisation would welcome any move by the Australian Securities and Investments Commission to develop a standardised way of projecting superannuation outcomes.
However, she noted that about 84 per cent of Australians currently relied either on the full or part age pension and suggested that benefit projections would need to include calculations on age pension entitlements to be meaningful.
As well, Reynolds said that any new tool would need to make superannuation fund members aware of how fees impacted on their retirement payouts.
“Given that an extra 1 per cent in fees can reduce a member’s final end benefit by up to 20 per cent, end-benefit projections should take fees into account,” she said.
AUTHOR
Mike Taylor
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