While some funds have simply implemented the reforms as an act of compliance, others have viewed it more as an opportunity to innovate, according to Mercer.
Mercer managing director and market leader David Anderson said the “massive change requirements of Stronger Super could’ve been seen as a ‘repackage’ exercise or as a catalyst to bring our very best thinking to market”.
Mr Anderson believes the super funds taking a more “innovative” approach to the reforms have moved towards offering their members lifecycle products.
He said these lifecycle investment products as default options have changed the Australian superannuation landscape and that Mercer’s analysis indicates an increase in the prevalence of lifecycle funds for Australians.
“We believe there has been a shift in Australians’ awareness and acceptance of lifecycle investing and we expect the trend of increasing lifecycle investment options will continue,” said Mr Anderson.
“There are perceived challenges we believe can be overcome and we expect the number and nature of the solutions will evolve over time.”
Mr Anderson said that more “innovation in superannuation must be encouraged, promoted and celebrated”.
