A flood of approvals by the Australian Prudential Regulation Authority late last year has seen licensed MySuper products jump from 82 in November 2013 to 116 in January 2014, according to a trends analysis.
The latest MySuper trends analysis by Mercer also showed that 22 of the 116 (19 per cent) are lifecycle options, double the amount available before MySuper.
The analysis also showed huge differences in the construction and implementation of these lifecycles.
The traditional approach of employing a static Strategic Asset Allocation (SAA) is still the most popular under the MySuper framework.
"It's often noted that not all static ‘70/30' default options are built the same, which is equally the case with lifecycle options. There are many layers to the debate about what constitutes the best lifecycle glidepath, and ideally it should be tailored to each fund and its member demographics," Mercer's head of investment consulting for the Pacific market, Graeme Mather, said.
"Important considerations in comparing lifecycle funds include factors such as whether it manages an individual's savings throughout their lifetime as opposed to only their working life; what percentage of savings will be in growth assets in retirement, and what age assets begin to move from high to low risk options."
The analysis also found only eight of the 22 approved lifecycle funds invest through retirement, and 14 invest up to retirement.
Out of the 14 retail funds with a MySuper lifecycle option, only four have a "member switching" approach and 10 have cohort funds.
Only one industry fund's MySuper lifecycle option has a cohort fund and three use a member-switching approach.
Mather said the super industry would be starting 2014 hoping most industry reforms had been implemented.
"The reality of the increased compliance requirements and the pressing need to shift attention to improving the options available to retiree members will mean there is likely to be little respite" he said.
