New data has revealed the degree to which self-managed superannuation funds are facing a decade of struggle as the COVID-19 pandemic and associated measures undercuts their value and their capacity to recover.
Superannuation funds may not necessarily be held responsible for making good the losses caused by fraud around the Government’s hardship superannuation early release regime, according to the Australian Prudential Regulation Authority.
While consumers have had it good for the last few years with life insurance, the loss ratio to the industry is unsustainable but the industry needs to make sure it doesn’t go too far when trying to solve its problems, according to a lawyer.
Data analysis around the Government’s hardship early release superannuation regime has revealed that the ‘rivers of gold’ inflows generated by the superannuation guarantee have been almost halved for some funds.
The ability for trustees to transfer amounts to the tax office when in a member’s best interest will improve superannuation fund administration flexibility, lead to more people’s super being reunited, and reduce multiple accounts, according to a super body.
Ten major superannuation funds continue to do the majority of the heavy lifting on hardship early release superannuation, but some appear to have been less affected than others with respect to second-round applications.
New Australian Prudential Regulation Authority data has revealed that more than half a million people sought early release of superannuation in just one week, with most of them being repeat applicants.
People who are doing it tough should be allowed to access superannuation for a first home deposit and the superannuation industry should be open to the concept, according to NSW Liberal Senator and former Financial Services Council policy executive, Andrew Bragg.
If advisers continued to follow best practices and best interests of clients, they are unlikely to be subjected to the referral of any complaints to AFCA, despite poor investment performance during the COVID-19 pandemic.