“No-boomers” Super Fund to Help Young Aussies
On Monday, Pearler Super launched its new “no-boomers” super fund aimed at young Aussies struggling to save for retirement. The new product will only be accessible to young members. The company stated that too many of the funds already cater to those currently in need of retirement income.
Giving Young Investors Confidence in Their Future
For a few small fees, Pearler will allow members to invest in exchange traded funds (ETFs). The new fund will include an admin fee of 0.438 per cent and a brokerage fee of 0.11 per cent. ETFs essentially allow individuals to hold multiple assets in one trade, which can help them grow their savings over time.
Nick Nicolaides, co-founder of Pearler, stated that there seems to be a disconnect between people interested in ETFs and those wanting to invest in their superannuation. Moreover, Nicolaides says many people don’t feel confident in their superannuation in the way that they do about ETFs. This product is a way to bridge the gap. Pearler is offering the “no-boomers” super fund as a way to solve this problem, not as a way to take any sort of stance against boomers.
Young Aussies Behind on Retirement
According to Nicolaides, the media have recognized the lack of engagement among young Aussies surrounding the topic of superannuation. If Australia doesn’t give the younger generation tools to save for retirement now, they’ll be facing the same problem as the current retiree-aged population in 20 or 30 years from now.
On top of a moderate population growth and increasing housing prices, young Australians are behind in terms of how much money they need saved for retirement. The challenges they face are numerous. They don’t want to work forever, nor do they want to rent forever.
Pearler’s “no-boomers” super fund will give members the ability to invest in 40 different ETF products. Additionally, users will be able to contribute money from their superannuation into each of these ETFs, between 5 to 100 percent.
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