Joint super accounts may create greater clarity
Changing the superannuation regime to allow for the creation of joint superannuation accounts would create much more value than simply reducing fees, according to actuarial research house, Rice Warner.
In an analysis published this week, Rice Warner has pointed to the dearth of information available to superannuation funds on the differing approaches to investment between male and female members.
It pointed to research findings outside of the superannuation industry which it said had typically portrayed women as being risk averse.
"But how well do these heuristics reflect the reality of investing within superannuation?" it asked.
"And what impact might that have on product design and member outcomes?"
The analysis said that Rice Warner had examined some 10 million plus member accounts in Australia, and it appeared that males were significantly more likely to invest in a choice option than a female.
"Some 26 per cent of males in Rice Warner's Super Insights study invest in a choice option, compared with 21 per cent of females," it said and questioned what might be driving this outcome.
"One explanation is that couples coordinate their investment decisions across both of their superannuation accounts. This only requires one member of the couple to be engaged in their superannuation, and investing in similar options across both accounts," it said.
However, the Rice Warner analysis said that it was impossible to test the hypothesis because funds did not know enough about their members, especially with respect to marital and partnership status.
It said that allowing joint superannuation accounts would allow funds to find out more about their members and allow for predictive modelling.
"Clearly, joint superannuation accounts have the potential to generate much more value than simply the reduction in fees that members might be able to achieve. And deliver the additional benefit of helping us researchers to resolve the investing battle of the sexes," the analysis said.
Recommended for you
The central bank has announced the official cash rate decision for its November monetary policy meeting.
Australia’s maturing superannuation system delivers higher balances, fewer duplicate accounts and growing female asset share, but gaps and adequacy challenges remain.
Global volatility and offshore exposure have driven super funds to build US-dollar liquidity buffers, a new BNY paper has found.
Less than two in five Australians are confident they will have sufficient assets to retire and almost three-quarters admit they need to pay greater attention to their balance, according to ART research.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
225.31 3 y p.a(%)
2
Loftus Peak Global Disruption Fund Hedged
120.73 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
72.47 3 y p.a(%)
4
Paradice Australian Mid Cap A
69.09 3 y p.a(%)
5
Global X Ultra Long Nasdaq 100 Complex ETF
61.94 3 y p.a(%)
