array(1) { [0]=> &object(stdClass)#5668 (52) { ["id"]=> string(5) "16662" ["title"]=> string(120) "Is the market overheating; should ETFs take your fancy, and what’s happening to the low and middle income tax offset? " ["alias"]=> string(114) "is-the-market-overheating-should-etfs-take-your-fancy-and-what-s-happening-to-the-low-and-middle-income-tax-offset" ["introtext"]=> string(156) "

On this episode of The nestegg Podcast, host Maja Garaca Djurdjevic and three experts discuss the latest in equities, property investing and super.

" ["fulltext"]=> string(1063) "

Steve Waters, director of Right Property Group, chats about the latest in property, including the much-talked-about use of macro-prudential measures to cool the rapidly expanding market.

RMIT’s senior lecturer of finance, Dr Angel Zhong, talks about soaring ETFs, what they are and why young investors, in particular, are jumping onboard their latest surge. Dr Zhong also takes a closer look at BNPL platforms.

And lastly, tax and super guru Timothy Munro gives his thoughts on Prime Minister Scott Morrison’s choice to backtrack on any further SG changes and looks at the impending end of the low and middle income tax offset.

Have a question for our experts? Get in touch at [email protected] and you might get featured on the next episode.

" ["checked_out"]=> string(1) "0" ["checked_out_time"]=> string(19) "0000-00-00 00:00:00" ["catid"]=> string(3) "302" ["created"]=> string(19) "2021-04-20 05:52:58" ["created_by"]=> string(4) "2404" ["created_by_alias"]=> string(0) "" ["state"]=> string(1) "1" ["modified"]=> string(19) "2021-04-20 07:31:39" ["modified_by"]=> string(4) "2357" ["modified_by_name"]=> string(12) "Erika Sauler" ["publish_up"]=> string(19) "2021-04-20 07:06:30" ["publish_down"]=> string(19) "0000-00-00 00:00:00" ["images"]=> string(233) "{"image_intro":"images\/podcasts\/Angel_Zhong_Steve_Waters_Timothy_Munro.jpg","float_intro":"","image_intro_alt":"","image_intro_caption":"","image_fulltext":"","float_fulltext":"","image_fulltext_alt":"","image_fulltext_caption":""}" ["urls"]=> string(121) "{"urla":false,"urlatext":"","targeta":"","urlb":false,"urlbtext":"","targetb":"","urlc":false,"urlctext":"","targetc":""}" ["attribs"]=> string(855) "{"article_layout":"","show_title":"","link_titles":"","show_tags":"","show_intro":"","info_block_position":"","info_block_show_title":"","show_category":"","link_category":"","show_parent_category":"","link_parent_category":"","show_associations":"","show_author":"","link_author":"","show_create_date":"","show_modify_date":"","show_publish_date":"","show_item_navigation":"","show_icons":"","show_print_icon":"","show_email_icon":"","show_vote":"","show_hits":"","show_noauth":"","urls_position":"","alternative_readmore":"","article_page_title":"","video_url":"","channel_id":"UCLBR-2LtTtui_WiRuEfW3qA","send":"0","test":"0","schema_active":"0","schema_name":"","schema_description":"","schema_thumbnailUrl":"","schema_uploadDate":"","schema_duration":"","schema_contentUrl":"","schema_embedUrl":"","comments":"1","readingDiff":"3","canonical_link":""}" ["metadata"]=> string(68) "{"robots":"","author":"","rights":"","xreference":"","metatitle":""}" ["metakey"]=> string(82) "market, overheating, etfs, fancy, what’s, happening, middle, income, tax, offset" ["metadesc"]=> string(200) "On this episode of The nestegg Podcast, host Maja Garaca Djurdjevic and three experts discuss the latest in equities, property investing and super. Steve Waters, director of Right Property Group, " ["access"]=> string(1) "1" ["hits"]=> string(2) "13" ["xreference"]=> string(0) "" ["featured"]=> string(1) "0" ["language"]=> string(1) "*" ["readmore"]=> string(4) "1063" ["ordering"]=> string(1) "0" ["category_title"]=> string(7) "Podcast" ["category_route"]=> string(17) "resources/podcast" ["category_access"]=> string(1) "1" ["category_alias"]=> string(7) "podcast" ["published"]=> string(1) "1" ["parents_published"]=> string(1) "1" ["lft"]=> string(2) "82" ["author"]=> string(12) "Robyn Tongol" ["author_email"]=> string(33) "[email protected]" ["parent_title"]=> string(9) "Resources" ["parent_id"]=> string(3) "300" ["parent_route"]=> string(9) "resources" ["parent_alias"]=> string(9) "resources" ["alternative_readmore"]=> NULL ["layout"]=> NULL ["params"]=> object(Joomla\Registry\Registry)#5666 (3) { ["data":protected]=> object(stdClass)#5658 (94) { ["article_layout"]=> string(14) "momentum:newne" ["show_title"]=> string(1) "1" ["link_titles"]=> string(1) "1" ["show_intro"]=> string(1) "0" ["info_block_position"]=> string(1) "0" ["info_block_show_title"]=> string(1) "1" ["show_category"]=> string(1) "1" ["link_category"]=> string(1) "1" ["show_parent_category"]=> string(1) "0" ["link_parent_category"]=> string(1) "0" ["show_associations"]=> string(1) "0" ["flags"]=> string(1) "1" ["show_author"]=> string(1) "1" ["link_author"]=> string(1) "0" ["show_create_date"]=> string(1) "0" ["show_modify_date"]=> string(1) "1" ["show_publish_date"]=> string(1) "1" ["show_item_navigation"]=> string(1) "1" ["show_vote"]=> string(1) "1" ["show_readmore"]=> string(1) "1" ["show_readmore_title"]=> string(1) "1" ["readmore_limit"]=> string(3) "100" ["show_tags"]=> string(1) "0" ["show_icons"]=> string(1) "1" ["show_print_icon"]=> string(1) "1" ["show_email_icon"]=> string(1) "1" ["show_hits"]=> string(1) "1" ["record_hits"]=> string(1) "1" ["show_noauth"]=> string(1) "0" ["urls_position"]=> string(1) "0" ["captcha"]=> string(0) "" ["show_publishing_options"]=> string(1) "1" ["show_article_options"]=> string(1) "1" ["save_history"]=> string(1) "1" ["history_limit"]=> int(10) ["show_urls_images_frontend"]=> string(1) "0" ["show_urls_images_backend"]=> string(1) "1" ["targeta"]=> int(0) ["targetb"]=> int(0) ["targetc"]=> int(0) ["float_intro"]=> string(4) "left" ["float_fulltext"]=> string(5) "right" ["category_layout"]=> string(14) "momentum:newne" ["show_category_heading_title_text"]=> string(1) "1" ["show_category_title"]=> string(1) "1" ["show_description"]=> string(1) "0" ["show_description_image"]=> string(1) "0" ["maxLevel"]=> string(2) "-1" ["show_empty_categories"]=> string(1) "0" ["show_no_articles"]=> string(1) "1" ["show_subcat_desc"]=> string(1) "1" ["show_cat_num_articles"]=> string(1) "0" ["show_cat_tags"]=> string(1) "1" ["show_base_description"]=> string(1) "1" ["maxLevelcat"]=> string(2) "-1" ["show_empty_categories_cat"]=> string(1) "0" ["show_subcat_desc_cat"]=> string(1) "1" ["show_cat_num_articles_cat"]=> string(1) "1" ["num_leading_articles"]=> string(2) "14" ["num_intro_articles"]=> string(1) "0" ["num_columns"]=> string(1) "0" ["num_links"]=> string(1) "0" ["multi_column_order"]=> string(1) "0" ["show_subcategory_content"]=> string(2) "-1" ["show_pagination_limit"]=> string(1) "0" ["filter_field"]=> string(4) "hide" ["show_headings"]=> string(1) "1" ["list_show_date"]=> string(9) "published" ["date_format"]=> string(0) "" ["list_show_hits"]=> string(1) "0" ["list_show_author"]=> string(1) "1" ["orderby_pri"]=> string(4) "none" ["orderby_sec"]=> string(5) "rdate" ["order_date"]=> string(9) "published" ["show_pagination"]=> string(1) "2" ["show_pagination_results"]=> string(1) "1" ["show_featured"]=> string(4) "show" ["show_feed_link"]=> string(1) "1" ["feed_summary"]=> string(1) "0" ["feed_show_readmore"]=> string(1) "0" ["sef_advanced"]=> int(1) ["sef_ids"]=> int(1) ["custom_fields_enable"]=> string(1) "1" ["show_page_heading"]=> NULL ["layout_type"]=> string(4) "blog" ["menu_text"]=> int(1) ["menu_show"]=> int(1) ["secure"]=> int(0) ["page_title"]=> string(14) "Superannuation" ["page_description"]=> string(7) "nestegg" ["page_rights"]=> NULL ["robots"]=> NULL ["page_heading"]=> string(14) "Superannuation" ["access-view"]=> bool(true) } ["initialized":protected]=> bool(true) ["separator"]=> string(1) "." } ["displayDate"]=> string(19) "2021-04-20 07:06:30" ["slug"]=> string(120) "16662:is-the-market-overheating-should-etfs-take-your-fancy-and-what-s-happening-to-the-low-and-middle-income-tax-offset" ["catslug"]=> string(11) "302:podcast" ["link"]=> string(133) "/resources/podcast/is-the-market-overheating-should-etfs-take-your-fancy-and-what-s-happening-to-the-low-and-middle-income-tax-offset" ["image"]=> string(58) "images/podcasts/Angel_Zhong_Steve_Waters_Timothy_Munro.jpg" ["image_alt"]=> string(0) "" } }

Latest Podcast

Is the market overheating; should ETFs take your fancy, and what’s happening t...

Resources

There is $17.5 billion in lost and unclaimed super across ...

Retirement

MySuper members ‘dumped’ into investment options

By Lucy Dean

September 27 2017
Share

Retirement

MySuper members ‘dumped’ into investment options

By Lucy Dean
September 27 2017

MySuper trustees have “not had much incentive to innovate” — meaning members haven’t enjoyed tailored products, rather, they’ve been “dumped” into one-size-fits-all options.

MySuper members ‘dumped’ into investment options

By Lucy Dean

September 27 2017
Share

MySuper trustees have “not had much incentive to innovate” — meaning members haven’t enjoyed tailored products, rather, they’ve been “dumped” into one-size-fits-all options.

That’s the view put forward by the Financial Services Council and Tailored Superannuation Solutions (TSS) in a new report.

The two organisations found that “millions” of Australians using MySuper could be missing out on about 35 per cent of their retirement balances due to a “lack of genuine competitive forces targeting better retirement outcomes”.

They explained: “Significantly higher levels of retirement savings can be achieved through reconsidering the traditional design of MySuper products, promoting member engagement with their superannuation and using new technology with member data to create innovative product design.

“Analysis by TSS shows that adopting innovative ‘smart default’ products that take into account a member’s individual circumstances, such as their projected retirement balance and time to retirement, could improve MySuper inflation-adjusted returns from an industry average of circa 3.5 per cent real per annum to 4.5 per cent per annum.

"That amounts to around 35 per cent improvement in retirement balances.”

Further, a “smarter” approach could contribute $5 billion to balances each year over 15 million MySuper accounts, filling the “impending retirement funding gap over time”, given that the 2015/16 Age Pension cost was $44 billion.

Nevertheless, the current industrial awards system and absence of competitive pressure in the default market has meant super fund trustees have been “allowed” to “avoid considering which changes may be necessary to adapt to technological shifts that improve retirement outcomes for members”.

“This has been reinforced by an unwillingness by trustees to invest in new technologies, due to a focus on lowest cost rather than improved retirement balances.”

The report argued that MySuper members rely on trustees to operate in their best interests until the point they choose to engage.

However, when that moment occurs, “those MySuper members who have simply been dumped in a one-size-fits-all investment option by their trustee can hardly be expected… to be enthralled by any offering”.

“The needs of MySuper members have been largely ignored, leading to a stark dichotomy”, the report added, claiming that member attraction and retention would be a key to success.

According to the Financial Services Council CEO Sally Loane, Australia’s 25-year-old system “must be made fit for purpose” by targeting the “retirement objective”.

She said new technology has made it easier to deliver products that are better tailored to individual needs, “but the current industrial default system means trustees have not had much incentive to innovate, until now”.

She continued: “The status quo is not providing solutions to the industry’s issues or contributing optimally to the retirement savings funding gap.”

TSS CEO Douglass Bucknell agreed, adding: “In this digital age, it’s no longer appropriate for MySuper trustees to just dump two 40-year-olds, one projected to retire on the age pension, the other with $1.6 million, in the same investment option for the next 25 years.”

“Trustees tell their choice members to consider their investment horizon and projected retirement balance when selecting an investment option – but don’t follow their own advice when it comes to selecting an investment option on behalf of MySuper members.”

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on Twitter for the latest updates

Rate the article

Superannuation

The 7 reasons you can access your superannuation early

Following the government’s early access to super scheme closing, the ATO is reminding Australians of the sevens ways they can still access their superannuation early. ...Read more

Superannuation

Two industry funds explore merger

An industry super fund for the energy sector and another for the transport industry have entered into a memorandum of understanding towards a potential merger. ...Read more

Superannuation

How you could be $160k worse off in retirement

The government’s new Your Future, Your Super legislation could be casting a favourable light on “high-fee, poor-performing retail funds”, which could cost retirees as much as $160,000, accord...Read more

Superannuation

Veto legislation a step backwards on net zero emission targets

Australia’s transition to a net zero carbon emission future has come under jeopardy, with a major source of funding unlikely to be available following the passing of the government’s new Your Futu...Read more

Superannuation

‘Super to be regarded in the same breath as terrorism’ if reforms pass: expert says

Superannuation would be regarded “in the same breath as terrorism offences” if the veto legislation – part of the Your Future, Your Super reforms – passes Parliament, an industry expert has wa...Read more

Superannuation

Retirees aren’t sitting on their super: ASFA

The vast majority of Australians exhaust their superannuation in retirement, according to data that flies in the face of the Retirement Income Review. ...Read more