The FPA says the MySuper cost savings could derail people from seeking advice, while a leading actuary has questioned the level of savings proposed by the government.
The proposed superannuation savings as a result of MySuper could provide people with a false sense of security, according to the FPA.
On Sunday, the Labor government announced it would allow companies to offer the MySuper product, claiming it would add almost $150,000 to the retirement balances of an average 30 year-old worker.
"We are concerned that Australians may be provided with a false sense of security," FPA chief executive Mark Rantall said.
"The proposed additional $150,000 of superannuation savings announced by the government will still not be adequate to retire on when the average superannuation balance is only $70,000," he said.
Rantall said it was important the government encouraged people to seek professional financial advice.
Meanwhile, Rice Warner chief executive Michael Rice has questioned the magnitude of the savings proposed by the Labor government and the Cooper review.
"I would say the amount of savings that has been predicted under the MySuper initiative is more of an election comment," Rice said.
"In fact, fees may increase following the implementation of MySuper."
In particular, Rice said funds will no longer be able to rely on cross-subsidisation from members in order to provide intra-fund advice.
Superannuation funds will also have to build up their operational reserves, which could result in higher fees for members, he said.
The two non-consecutive alphabetic letters encountered most often last week caused more controversy than the underlying policy they represented, Wouter Klijn writes.... read more »
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