Commonwealth Bank of Australia (CBA) has launched a low-cost MySuper-compliant life-stage superannuation product, Essential Super, targeting young Australians, as well as retirees and small business owners.
The product will be rolled out to CBA’s customers 1 July 2013 onwards, and is a joint project between CBA’s wealth management division, Colonial First State (CFS), and its retail banking services.
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The new product targets personal customers and the fees are competitive with industry funds, traditionally the home of Generation Y customers.
Essential Super has no exit fees and does not pay commissions to financial advisers.
Essential Super will be offered as a companion product to CBA customers’ transactions accounts and also via the existing branch network offering advice to more of its 10 million current customers.
CFS executive general manager, Linda Elkins, said: "The product would offer customers a simple solution where they could view and manage their superannuation in the banking group’s online banking tool, NetBank. It also offers bank’s small business customers to pay their employees’ super guarantee contributions."
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By GlobalDataCFS, general manager for product and investments, Peter Chun said: "We’ve designed it to be in line with the top ten industry super funds and the fee structure is very simple which is five dollars per month and 0.8% per annum."
The product offers lifestage options where customers are put into an investment mix based on their age, or customers can choose their own investment option. Simple insurance is also adjusted throughout the life of the customer.
CFS was granted MySuper authorisation from Australian Prudential Regulation Authority (APRA).
