Retail finance researcher Canstar Cannex has awarded its top five-star rating to 10 account-based pension funds after performing a review of these types of offerings.
The pensions to receive five-star status were from AGEST Super, AMIST Super, AMP Flexible Super, BUSSQ, Energy Super, First State Super, LUCRF Super, Media Super, MLC MasterKey Fundamentals and Vic Super.
Pensions were assessed on how useful they would be to people with a high super balance, a medium super balance and a low super balance.
“We strongly believe the value of a pension product depends largely on how the consumer uses it and that’s what makes our comparison different – it guides you through the steps to the pension products that may suit your individual investment need at different investment balances,” Canstar Cannex head of research Steve Mickenbecker said.
Of the products that earned a five-star rating, only AMP Flexible Super was included in the top bracket for all three balance categories.
Out of a universe of over 350 superannuation funds offering account-based pensions, Canstar Cannex examined a total of 77. Corporate, specific industry and employer funds were deliberately excluded.
“Our number one criterion was to compare only those funds which any one of us could join without going through an intermediary such as a financial planner,” Mickenbecker said.
Apart from examining the ability to serve individuals in relation to their retirement savings balances, the pensions in question were also judged on 80 different inherent features. These included aspects such as available investment options, payment options, continuance of insurance, availability of advice, fund performance and investment strategy.
