AMP has announced that it will be delivering further fee reductions for superannuation members, driven by its ongoing program to simplify its super business.
Effective from 1 October 2021, AMP’s super products will be simplified from 11 to three, which will enable:
- MySuper fee reductions of 8 per cent on average across dollar administration and investment fees1
- Choice fee reductions of 29 per cent on average across administration and investment fees1
The reduction to MySuper fees is being delivered in addition to AMP lowering members’ fees in both 2020 and in 2018.
AMP’s super simplification program began in 2018 with a focus on improving business efficiency, and returning the benefits to members through lower fees, simpler fee structures, and improved member services. The reductions announced today were planned as part of the program and are included within the margin guidance that was provided in AMP’s first-half 2021 results.
The following benefits will be delivered for members as a result of the changes on 1 October 2021:
- Majority of AMP members in Master Trust products will see reductions in administration and investment fees.
- There will be a simplified investment menu, which will reduce complexity and make investment decisions easier, while still providing access to the industry’s best fund managers, including ESG and low-cost index options.
- New and improved online functionality, including a more integrated super and pension investment menu will make it easier for members to transition to retirement, and the ability for members to nominate beneficiaries online.
AMP members continue to have access to our online financial education resources and financial counselling services.
AMP Australia CEO, Scott Hartley said:
“It’s important that our members have low fees, good performance and excellent member services that help them to make the right decisions to build for their retirement.
“As part of our plan to simplify our business, we committed to lowering our fees, reducing our costs and returning the benefits to members. Our goal is to continually improve the experience of members, and the financial advisers who support many of them.
“We know how important and valued our member services are. Particularly through Covid we have seen a strong increase in members wanting advice and support with their finances. This year there was a 200 per cent increase in people accessing our free online financial education content. Giving members access to free financial information is critical to helping them to make good decisions in order to meet their retirement goals.
“Investing our members’ retirement savings is also an important responsibility. We have achieved great returns for members recently, particularly those in AMP’s MySuper Lifecycle fund, where we delivered an average return of 20 per cent for the past financial year.
“We are focused firmly on the future and delivering both strong and sustainable returns for our members remains a key priority.”
1 Excludes indirect fees