The concept of placing all members in the same one-size-fits-all (balanced) investment option for life, regardless of if they are 20 or 64 years old and regardless of if they are heading towards retirement on just the Age Pension or with $1.6M is wrong.
That no longer meets Community Expectations or Standards.
As the Royal Commission has confirmed, a trustee cannot avoid its obligations by doing nothing, when there is a better way as confirmed by the Productivity Commission in its’ Finding 4.3. Trustees need to have TTS tested on their own funds.
Imagine if a financial planner took that simplistic approach – they would be banned. Further funds own websites suggest that choice members consider their age and projected retirement balance when selecting an investment option.
So how can trustees do better? Introduce TTS.
TTS fixes this issue automatically for trustees by tailoring their investment options to their members projected outcomes. This is explained in the FSC report Innovation in Superannuation: MySuper Smart Defaults and in the FINSIA interview of our CEO Douglas Bucknell.