Default Fund Costs Under the MySuper Proposals



This report details the results of Deloitte's investigations into the projected costs of a large default superannuation fund established within the MySuper proposals currently being considered by the Review. The basis for this report was a draft discussion paper “MySuper: Optimising Australian superannuation”. While this might differ from the Review’s final recommendations we are advised that the key aspects of this paper that Deloitte mention in this report as influencing our conclusions remain valid.

The scope of this report is described in an Official Work Order, which asked Deloitte to analyse the projected costs that a large default superannuation fund could charge for an average member with an account balance of $25,000 and for other account balances, assuming a number of investment strategies including:

  • A typical balanced asset allocation;
  • A defensive asset allocation;
  • Use of alternative investments.

Deloitte were also asked to comment on the levers and variables involved.

The aim is not to provide definitive conclusions on the actual cost that might apply within a default fund but rather to provide information which can then be used by the Review for informed discussions with the industry.