Most company superannuation schemes may fold

A study into corporate superannuation schemes by investment bank ABN Amro and actuaries Rice Walker predicts that most corporate funds would close or merge, due to the costs of compliance. The study suggests that at least 600 and as many as 800 of 1000 corporate super schemes would disappear. The report expects that companies running super schemes will tip their staff into master trusts and industry funds. Rice Walker says this will be so, even though their research shows that corporate funds were the cheapest of the super offerings, with an expense rate of only 0.75 per cent. The next best were corporate master trusts, with an expense rate of 1.14 per cent and industry funds with expenses of 1.17 per cent. Retail master trusts were far more expensive, at 2.11 per cent.

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