FSC research backs super platforms, choice

Mike Taylor

Managing Editor and Publisher

26 June 2026

The Financial Services Council (FSC) has commissioned research which both argues the case for maintaining appropriate member switching between superannuation funds and defends the relevance and appropriateness of platform-based superannuation.

The FSC research, undertaken by NMG Consulting, also argues that platform superannuation fees are comparable with those of MySuper products.

Release of the research comes as the Assistant Treasurer and Minister for Financial Services, Daniel Mulino considers Treasury advice stemming from the consultation initiated around the collapse of Shield and First Guardian.

The FSC argues that the research has reinforced the need to allow superannuation choice, stating “making simple choices at the right time can materially improve outcomes compared with remaining in the default fund allocated when first entering the workforce”.

It outlined the key findings of the research as being:

•  An individual who switches early (from age 30) to reduce investment fees could be as much as $1.2 million better off at retirement.
• An individual who switches early (from age 30) from their default fund to a high growth simple choice product could be $690,000 better off at retirement.
• Remaining in a MySuper product means typically being underweighted to growth assets by 14%, meaning more than 7 million Australians under 50 may be structurally underexposed to growth assets, potentially leaving them $540,000 worse off at retirement.

FSC chief executive, Blake Briggs said that while his organisation supports sensible and targeted reforms to address predatory behaviour alleged in the Shield and First Guardian collapses, it is opposed to policy changes that make it harder for Australian to exercise control over their superannuation.

The research notes that MySuper products play an important role in supporting disengaged members to accumulate retirement savings and providing insurance protection. However, they are not designed to optimise outcomes for individuals with different circumstances and needs.

“When Australians are informed and engaged with their superannuation, it gives them greater confidence and peace of mind, particularly during periods of economic uncertainty and global instability. In times of volatility, access to quality advice and strong engagement can help members stay focused on their long-term retirement goals and avoid reactive short-term decisions, supporting better retirement outcomes over time,” Briggs said.

Defending his platform superannuation constituency, Briggs said it was simplistic to say platform products have high fees compared to MySuper products.

“Many wrap products, particularly compact and mini wraps, now offer fees that are comparable to MySuper products, particularly at higher balances.”

“The research also shows households with lower retirement balances can still benefit from financial advice and platform products when their finances are considered at a household level.

“Advice delivered through platforms can help households optimise their financial position across areas such as debt management, budgeting, retirement planning, aged care costs, estate planning and Centrelink – with investment selection representing only one part of the advice process.

Briggs said, “Improving access to advice and preserving consumer choice will be critical as more Australians approach retirement, when financial decisions become more complex and individual circumstances vary significantly.”

NMG Consulting’s Lachlan Reardon described choice as a “spectrum” and said s important that consumers have access to products that can be tailored to their individual risk appetite and retirement goals. Consumers, particularly those receiving financial advice, are increasingly turning to platform-based products because they offer efficiencies and flexibility.”

Recent innovations in platforms have also delivered wider flexibility, lower fees and more streamlined investment menus.

Analysis of platform fees indicates that, across balances, platform fees can be comparable to MySuper products:

• $50,000 balance: Average MySuper fees are 88bps (up to 123bps), compared with 95bps for a compact wrap and 54bps for a mini wrap.
• $500,000 balance: Average MySuper fees are 77bps (109bps for the most expensive), compared with 67bps for a compact wrap, 52bps for a mini wrap and 81bps for a full wrap.
• $1.5 million balance: Average MySuper fees are 68bps (108bps for the most expensive), compared with 57bps for a compact wrap, 48bps for a mini wrap and 66bps for a full wrap.

These figures exclude additional discounts that may apply, including dealer group pricing and family discounts.