Colonial First State is looking at the opportunity of offering a low-cost superannuation product to its advisers. 

"We do have a growing demand from advisers to have a low-cost product because a lot of advisers are looking at generational wealth at the moment. They now want a low-cost product that would suit the needs of their children," Colonial First State general manager of distribution Marianne Perkovic said.

"So we are getting more demand from advisers to bring this sort of product onto our platforms, because at some stage those clients in the low-cost offering will want to use [other products] on our platform."

Perkovic made the comments at IFA's [InvestorDaily's sister publication] master funds roundtable last week.

Responding to the MySuper proposal and whether Colonial First State had plans to develop such a product, Perkovic said it depended on regulation.

"We obviously have to respond to the regulatory reviews and what it means for the product[MySuper]", she said.

She said at this stage, any plans to enter the low-cost superannuation market would be driven by adviser demand.

AMP and BT Financial Group have already launched low-cost superannuation products ahead of any proposed legislation around MySuper.

AMP launched the AMP Flexible Super product earlier this year.

BT Financial Group's Super for Life was launched in 2007 and was distributed to the Westpac branch network a year later.

"It was very much consumer-driven for us, capturing clients who walked into the bank's branches," BT Wrap head Craig Lawrenson said.

The trend for the retail superannuation sector to offer low-cost products would continue, according to SuperRatings chief operating officer Nathan MacPhee.

"BT Super for Life has been a very successful product and now has about $1 billion in management. You are seeing the smart retail fund offer low-cost products to capture the 20 and 30 year-olds. Later on, these funds are then able to introduce them to advice and more sophisticated products," MacPhee said.