The Financial Services Council, in partnership with Deloitte Access Economics, yesterday released a report analysing the benefits to consumers of making Australia’s superannuation system more competitive.

The report said increased competition in the superannuation sector could reduce the fees paid by consumers by $292 million each year, across the 14 million MySuper accounts in existence.

“The clear conclusion is that further choice and competition should be introduced into Australia’s default superannuation system,” the council said in a statement.

The study also found that the current superannuation system does not necessarily protect consumers from being placed into underperforming funds.

“The evidence is clear. If competition reforms are introduced to allow all funds to compete in an open and transparent market, fees in superannuation will fall dramatically,” FSC chief executive Sally Loane said.

“While we always acknowledge the criticality of value and returns from super funds, fee reductions will greatly improve the ability of Australians to save more for their retirement and consequently improve their standard of living in retirement,” Ms Loane said.

“The other critical issue is that all Australians should be enabled to freely choose a fund that suits them.”