Reforms to make your super work harder for you
Australia's compulsory superannuation system is essential to the retirement incomes of its 16 million members.
Structural flaws in the system are letting too many Australians down:
- Unnecessary fees and insurance premiums are paid on unintended multiple accounts which are created when people change jobs and do not nominate a super fund. This results in a reduction in retirement savings.
- Australians are paying too much for their super with the fees amongst the highest in the OECD. Australians pay $30 billion a year in super fees which is more than what they pay for electricity and gas combined.
- There are too many underperforming products in the market and this is costing members millions in lost retirement savings.
- Funds lack accountability to their members for their conduct and the outcomes they deliver and there is inadequate transparency on how funds are spending members' money.
The Government has already introduced several reforms that have helped Australians reduce the amount of unnecessary fees and unwanted insurance premiums they pay — all of which have increased their retirement savings.
The Super reforms will see Australians save $17.9 billion over the next decade. Commencing on 1 July 2021 these reforms will make your super work harder for you.
Source:Budget Factsheet 2020-21
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Last modified: Monday, October 12, 2020