Superannuation expert Daryl Dixon discusses his new book with Tony Delroy
Daryl Dixon, Executive Chairman of Dixon Advisory, discussed his new book on the UniSuper Defined Benefit fund and outlined some of the fund’s issues in his most recent interview with Tony Delroy on ABC radio’s Nighlife.
Daryl said UniSuper’s defined benefit fund no longer guaranteed benefits for members and it depended on “what’s in the scheme when you want your money as to what you’ll get”. This was dependent on rates of return and the structure.
“Unlike the Commonwealth or Telstra or any other defined benefit fund I’ve ever seen, a person who’s 65, per year of service, gets 27 per cent more than anybody who’s 40 and under,” he said.
“. . .They (UniSuper) changed the accrual of benefits for service after the first of January 2015 to reduce it, to make the fund more viable and the biggest losers from that are the younger people.”
Daryl said he explained the options for members in his book (An Uncertain Future: Exploring the issues and options for UniSuper Defined Benefit fund members).
Daryl covered a broad range of topics in the interview, including interest rates, here and overseas, the Chinese and American economies, the euro, local employment and the wage structure and superannuation. As well as the issues with UniSuper, Daryl also considered the “lifecycle” approach (reducing the risk profile as a member moves into pension phase) versus one-size-fits-all approach of investment strategies for MySuper funds.
Listen to Daryl’s full interview and discussion with callers on 28 January 2014. It runs for about 40 minutes.
Find out more about Daryl’s new book.