Compulsory superannuation has provided significant resources for lobby groups to propagate myths about superannuation, according to newly-elected NSW Liberal Senator and former Financial Services Council (FSC) policy executive, Andrew Bragg.
Addressing an industry forum this week and ahead of Super Review’s Future of Superannuation event in Melbourne on Thursday, Bragg claimed there were half a dozen major lobby groups “constantly decamped at Parliament House” advocating around superannuation myths.
He said the common themes being espoused by these groups included that “more super is always good”, “more super is the solution to everything” and “the system is good as it is”.
However, Bragg claimed that the lobbyists were advocating for the superannuation industry itself rather than for members and cited the failure of many sections of the industry to recognise that insurance was draining $1.9 billion from superannuation each year.
He said that it was in these circumstances that an opportunity for the industry to show some leadership by engaging in the Government’s forthcoming retirement review by adopting a consumer focus and jettisoning its industry focus.
Bragg went on to suggest that superannuation funds were clearly focused on their internal constituencies which were often financial sector conglomerates or unions and referenced what he called the “civil war” which had been conducted between industry funds and retail maser trusts.
“My advice for the industry is to set the civil war aside because the effectiveness of the whole system is the only thing that matters to policy makers,” he said.