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Fiscal Impacts of Removing Insurance in Superannuation

  • On 30/10/2018
Insurance in superannuation – balancing fiscal costs with social benefits The Productivity Commission (PC) released its draft report assessing the efficiency and competition in the Superannuation Industry in May 2018.  This report included recommendations to improve the provision of insurance through superannuation and some of these were similar to changes announced by the Government at […]
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Retail Insurance Indexed Cover can seriously damage your wealth

  • On 03/10/2018
Over the last decade, we have seen significant change in the Retail Life insurance industry.  Life companies and some specialist providers continue to strive for greater value and appeal to customers in a highly competitive market. In the Group Life insurance industry, Trustees of superannuation funds have obligations to consider the affordability of any default […]
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Preparing for a market downturn

  • On 27/09/2018
The behaviour of stock markets is unpredictable as sentiment plays a big part in short-term price movements.  When people are upbeat about the economy, prices often rise exuberantly; when the market turns down significantly, it is usually fast and without notice.  So, while we can say that investment markets follow a cyclical pattern, no one […]
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Fix lifecycle, don’t scrap it

  • On 05/09/2018
Lifecycle products were developed in Australia following the market downturns in the Global Financial Crisis (GFC).  Some members approaching retirement had a reduction of 20% of their superannuation benefit and the new products were designed to reduce the loss for members experiencing similar events in the future. Some members did not understand the asset allocation […]
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Fees versus Value

  • On 16/08/2018
Superannuation fees have long been a contentious issue for our industry. In 2003, the then Labor Shadow Minister for Retirement Incomes and Savings, the Honourable Nick Sherry, suggested that superannuation fees, then averaging 1.37% of assets, be capped at 1% of assets bringing the discussion to the forefront.  At the time this seemed an ambitious […]
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