Retirement Savings Cost (RSC) Disclosure
For many years now, retirement funds have been left to a large degree to report their costs related to their products as they see fit. This has created a lot of confusion for employers and their employees when trying to see how their retirement fund compares to others in the market.
This lack of standardization in terms of reporting has allowed a lot of fees to go unnoticed (especially where admin and consultancy fees are lumped together) and finally the time has come where a new Retirement Savings Cost (RSC) standardized disclosure has been enforced to be produced by the retirement funds.
For employers and its members, this is good news as there will be less reliance on the individual/advisor that is providing the comparison to give an unbiased and fully disclosed report. Being able to reduce fee costs means more funds being allocated to the retirement savings portion (which was the original intended outcome of a retirement fund).
The argument is always that it is not just about cost and there are probably not many people that would disagree with this but tackling the issue of “lack of proper disclosure” around the cost elements will go a long way towards better choices.
The RSC disclosure became compulsory 1 September 2019 so ensure your quotes all reflect this.
Bunty Wilson (CFP)
Employee Benefits Specialist