To provide Australians a greater chance of creating an adequate and sustainable income in retirement, Mercer has designed a fund which automatically changes as members do throughout their whole life. It recognises that superannuation isn’t just there to create wealth, but it also should deliver an adequate and sustainable income throughout retirement.
Arguably one of the most sophisticated products on the market, Mercer SmartPath was recognised by the industry at the 2014 Chant West | Conexus Financial Super Fund Awards winning the award for Best Fund: Innovation. We believe this demonstrates that we are on the right track in innovating investment design to provide super members better retirement outcomes.
Since we built Mercer SmartPath and implemented it as Mercer SuperTrust’s default fund in December 2013, more than 125,000 members have switched to Mercer SmartPath.
It adopts a whole of life or lifecycle approach, where asset allocation changes are made right up to age 85. It has relatively high levels of growth assets in retirement – around 50% at age 65 reducing to 40% at age 85 – because it takes the Age Pension into account.
The investment strategies change dynamically as members become older to better reflect their risk tolerances, liquidity needs and tax status. It also has four price points – which means older members are not subsidising younger members and they are paying lower percentage fees when their account balance is at its highest.
For more information visit http://www.mercer.com.au/smartpath
Mercer is a global leader in talent, health, retirement and investments. Mercer helps clients around the world advance the health, wealth and performance of their most vital asset – their people. Mercer’s 20,000 employees are based in 43 countries and the firm operates in over 140 countries. Mercer is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), a global team of professional services companies offering clients advice and solutions in the areas of risk, strategy and human capital. With 55,000 employees worldwide and annual revenue exceeding $12 billion, Marsh & McLennan Companies is also the parent company of Marsh, a global leader in insurance broking and risk management; Guy Carpenter, a global leader in providing risk and reinsurance intermediary services; and Oliver Wyman, a global leader in management consulting. Follow Mercer on Twitter @MercerAU @MercerInsights