Pre-Retirement Research

In Australia our mandatory superannuation savings for employees provides many people with a robust structure in which to save.  But the historical construct has been to invest with no goal.  The assumed goal is to maximise wealth, but is that really what members want?  And indeed is it what fiduciaries should supply.  Explore these articles and sources for a variety of opinions on what the real goal of superannuation should be.....

  1. In line with our own suggestions Doug Bucknell talks about smarter defaults in super funds and the need to innovate to achieve the best outcomes for members.

  2. The new CEO of ASFA Dr Martin Fahy made a speech that was reported by Graham Hand of, sharing his views on superannuation, the status quo, and how the industry needs to move forward in so many areas.  He sets a wide and exciting agenda for the industry.

  3. Many funds have created calculators for their members and allow access through their fund website.  However Warren Chant rightly asks "where is the consistency"?  He has written on the subject here.

  4. The pressure is mounting on fund managers (and all service providers) to recognise that there needs to be value for the fees charged to members.  Frontier mount a convincing case for changing the way fees are charged in this paper.

  5. A Crisis in Retirement Planning - Robert C Merton in the Harvard Business Review  Nobel Laureate Distinguished Professor of Finance at the MIT Sloan School of Management Robert C Merton says that our approach to saving is all wrong: we need to think about monthly income, not net worth.  July 2014

  6. Our Pension System - What is the Goal  The Founder of Income is the Goal Tony McFadyen asks what is the real goal of our superannuation or pension system - What is the real goal and how should it be described.

  7. MySuper : A new landscape for default superannuation funds.  Reserach prepared by Warren Chant, Mano Mohankumar, and Dr Geoff Warren.  The report examines the changes to default fund structures following MySuper, as well as changes to fees and approaches.  April 2014.

  8. Human Capital is the Missing Link to Proper Retirement Planning  This article was written whilst the founder of Income is the Goal Tony McFadyen was working with Dimensional Fund Advisors.  It discusses the important concept of humal capital and how it is integral to appropriately allocating financial assets in the pre retirement phase.  

  9. Towers Watson Article on Re-thinking the Superannuation Fund Mission  Towers Watson important contribution to the debate arguing that the mission of superannuation funds should be defined as the delivery of reasonable member retirement expectations in a reliable fashion, without the need to revise expectations downwards as retirement approaches. Released July 2014