AMP Financial Services (AMP FS) has announced it will adjust the pricing structure for a number of superannuation products as it aims to be more price competitive.
The firm has revamped the pricing structure for Flexible Lifetime – Super, Flexible Lifetime – Allocated Pensions, and CustomSuper with the changes to take effect from 1 November.
However, after 30 June these products will be closed to new business.
The pricing changes are aimed to be consistent with the firm’s new low-cost product, AMP Flexible Super, which was launched yesterday.
“These changes are about ensuring our products remain competitively priced while representing good value for our customers,” AMP FS managing director Craig Meller said.
AMP Flexible Super would increase simplicity and bring down costs for both retail and small to medium enterprise clients, he said.
“The new pricing will also reward customers as their assets grow during their lifetime, with management fee rebates increasing as account balances grow,” he said.
“AMP Flexible Super caters for our broad customer base by offering a single entry-level option to which customers can then add more features, according to what they need at different stages of their life.”
It has no in-built commissions on its super and investment options and any advice fees will be agreed in advance between the customer and their planner, Meller said.
The product, available from 24 May, offers three investment modules including core, select and choice, and offers between two and 72 investment choices as well as a range of insurance options.
AMP Flexible Super has a member fee of $1.50 a week for core, $2 a week for select and $2.50 a week for choice, and a management fee depending on the level of investment starting from 0.5 per cent per annum.
AMP FS estimated that under the changes, 70 per cent of its current clients would pay less than they did at the moment.
