Retirement
Australians need power to choose super
A loss of choice around super funds affecting around one million Australians has been blasted by a financial services advocacy group.
Australians need power to choose super
A loss of choice around super funds affecting around one million Australians has been blasted by a financial services advocacy group.
The Financial Services Council (FSC) has urged the Senate Economics Committee to allow Australians the choice of super fund as part of reforms to the Treasury Laws Amendment (Your Superannuation Your Choice) Bill 2019.
The organisation has been a vocal advocate for removing restrictions on choice in superannuation, according to CEO Sally Loane.
She noted that “up to one million Australians currently do not have the option to have superannuation payments made into a fund of their choosing”.
The submission to the Senate Economics Committee outlined that there are “no clear reasons why the group without choice cannot exercise the rights that the remainder of Australians can exercise”.
With “no justification for preventing them from choosing a superannuation fund”, Ms Loane said some of these people will be locked into a poorly performing fund simply because of where they work.
“Others will be forced to hold multiple accounts, and have their balances eroded by duplicate fees,” she continued.
The CEO considered that a compulsory superannuation system “should not create situations where members are required to go to these lengths to work around outdated policy settings and manage their own money”.
According to the submission, the absence of choice related to super fund creates particular problems for individuals who utilise an SMSF or investor-directed product, make specific investment choices in their existing fund, have chosen insurance levels either above or below default levels, have made death benefit nominations, or prefer their existing fund for a particular fund.
Despite the stance, she acknowledged the FSC does know that “most Australians don’t engage with their superannuation and will remain with their default fund”.
Where this is the case, Ms Loane called for more reforms to ensure all Australians are defaulted once into high-quality default fund.
But “for those individuals who want to choose, they should have the freedom to manage their superannuation as they wish”, she concluded.
About the author
About the author
Superannuation
Aware Super takes on Australia's gender retirement gap, aiming for financial equality
Aware Super, one of Australia's largest superannuation funds with a 70 per cent female membership, is on a mission to close the gender gap that sees women retire with 30 per cent less super than men ...Read more
Superannuation
Age Pension increase prompts Australians to review their finances
The increase in the Age Pension, which takes effect today, should serve as a prompt for many older Australians to ensure they're maximizing their income as cost-of-living pressures persist, according ...Read more
Superannuation
Retirement reimagined as Australian optimism meets inflation worries in 2023 super fund insights
The latest reports on retirement confidence among Australians present a spectrum of sentiments, with fresh data revealing surprising optimism in some quarters while exposing underlying concerns in ...Read more
Superannuation
Aussie retirees face a shortfall as ideal retirement nest egg doubles what super will deliver
As Australians look towards retirement, the desired superannuation balance that many believe will ensure a comfortable retirement has significantly outpaced what they are on track to actually save. Read more
Superannuation
Super funds eye 6.5% return in 2023, despite a rocky start
As the year draws closer to its climax, Chant West unveils its projection for super funds in what can only be described as a year of economic ebbs and flows. Read more
Superannuation
A deep dive into Australia’s superannuation system
Australia has a robust retirement savings system known as superannuation designed to provide financial security to Australians in their post-work years. Read more
Superannuation
50,000 super fund members impacted by data breach
Around 50,000 member records were impacted by the breach that took place earlier this month. Read more
Superannuation
Two super funds tipped to reach $1tn by 2040
KPMG has released the findings from a new review. Read more
Superannuation
Aware Super takes on Australia's gender retirement gap, aiming for financial equality
Aware Super, one of Australia's largest superannuation funds with a 70 per cent female membership, is on a mission to close the gender gap that sees women retire with 30 per cent less super than men ...Read more
Superannuation
Age Pension increase prompts Australians to review their finances
The increase in the Age Pension, which takes effect today, should serve as a prompt for many older Australians to ensure they're maximizing their income as cost-of-living pressures persist, according ...Read more
Superannuation
Retirement reimagined as Australian optimism meets inflation worries in 2023 super fund insights
The latest reports on retirement confidence among Australians present a spectrum of sentiments, with fresh data revealing surprising optimism in some quarters while exposing underlying concerns in ...Read more
Superannuation
Aussie retirees face a shortfall as ideal retirement nest egg doubles what super will deliver
As Australians look towards retirement, the desired superannuation balance that many believe will ensure a comfortable retirement has significantly outpaced what they are on track to actually save. Read more
Superannuation
Super funds eye 6.5% return in 2023, despite a rocky start
As the year draws closer to its climax, Chant West unveils its projection for super funds in what can only be described as a year of economic ebbs and flows. Read more
Superannuation
A deep dive into Australia’s superannuation system
Australia has a robust retirement savings system known as superannuation designed to provide financial security to Australians in their post-work years. Read more
Superannuation
50,000 super fund members impacted by data breach
Around 50,000 member records were impacted by the breach that took place earlier this month. Read more
Superannuation
Two super funds tipped to reach $1tn by 2040
KPMG has released the findings from a new review. Read more