An interesting article published in today's Sydney Morning Herald has claimed that the super industry is lagging in key areas. It quotes a study conducted by one of the big 4 accounting firms, Deloitte, and highlights that 40% of corporate funds that were surveyed did not provide any form of post-retirement products and over half said they did not have transition to retirement pensions.
This means that if you had assets invested in one of those corporate funds, once you reach the lead up to retirement and want to access a transition to retirement strategy you would be forced into changing to another service provider. This may entail the creation of a capital gains event and lead to a reduction in the final benefits you could expect to receive. Not to mention the hassle of changing providers and having to get used to a new way of doing things. It may also mean that the investments you have become comfortable with are not available in the same form as in your superannuation fund.
We believe this is a significant issue for investors and are very pleased that the superannuation product we recommend allows a simple and seamless transition from superannuation mode to pension mode.
If you would like more information please get in contact via our contact page or fill in the Request for Feedback form to the right.