Active Super enhances MySuper product to help members with their retirement needs

Sydney, 9 August 2021: Active Super is enhancing and simplifying its default MySuper product with changes designed to provide members with more super in retirement.

From 1 October, the ages at which members transition to lower-risk investments will be adjusted in order to increase their exposure to market gains and ultimately lead to greater balances at retirement.

Active Super Chief Executive Officer Phil Stockwell says: “Active Super is making these important changes to its MySuper product in order to deliver better member outcomes through higher expected returns. 

“Active Super members can continue to either invest in the MySuper Lifestage product or choose their own investment mix through our Choice Investment products. Either way, we remain committed to making active investment decisions on behalf of our members by incorporating our whole of fund responsible investment approach.

“This latest initiative underscores our continued commitment to deliver quality customer service and solid long-term returns for our members. It follows on from our recent decision to rebrand and reduce our administration fees as part of our ongoing commitment to look after our members.”

MySuper changes

From 1 October, the number of investment stages in our MySuper product will be reduced to three from four, and each investment stage will be renamed to match relevant life stages. 

Active Super Chief Investment Officer Craig Turnbull says the MySuper product adopts a life stage approach where members’ exposure to risk assets decreases as they get closer to retirement.

“The age that members transition between investment stages can make a significant difference to their super. Australians are now living and working longer. By delaying the age that we move members to lower-risk investments, we aim to help maximise their super balance and also make it last longer in retirement,” Mr Turnbull says.  

Active Super worked with Mercer to analyse various changes to the age-based transition between investments based on member profiles. 

The new stage names and relevant age brackets are:

Accelerator (up to Age 49): This is the stage of life when members may want to take more investment risk to increase the potential growth in their super balance.

Accumulator (Age 50 - 54):  At this age, members may be starting to think about limiting the downside of any significant market correction, while still benefitting from a rising market. 

Appreciator (Age 55+):  Member’s may now be moving into the last stage of their full-time working life and may want to ensure the super balance they’ve accumulated continues to grow, but with less exposure to significant falls in the market that could lead to a delay in retirement or having to adjust their lifestyle based on a lower balance when they retire.

From 1 October, Active Super will also make changes to its Choice products to ensure members can easily identify and compare fund performance. Two of its Choice Investment products will be renamed – Balanced Growth will become Balanced, and Balanced will become Conservative Balanced.

The new names will better reflect the investment mix in these investment options compared to similarly named products across the industry. The changes affect the name only and do not impact the way investment options are managed.  

More information can be found here.

Want to know more?

You can read about the changes in detail in the significant event notification.