Financial Services Council (FSC) chief executive Sally Loane has reinforced the need for important policy reforms, particularly the introduction of a ‘default once’ system for superannuation.
Speaking at the launch of the Melbourne Mercer Global Pension Index at the FSC, she said there needed to be greater focus on the implementation of outstanding reforms to superannuation and retirement systems.
“We know Australia’s world class superannuation system is being held back by outdated policy settings that create inefficiencies and erode retirement savings,” Loane said.
“We continue to urge the Government, and Parliament, to implement the recommendations of both the Royal Commission and Productivity Commission to reform default superannuation by introducing a ‘default once’ system.”
This system would create a single default account for superannuation members, like a bank account or tax file number, which would allow a simpler transition process when moving jobs.
“Decoupling superannuation from the industrial relations system is an essential reform to deliver a superannuation system that is fit for purpose in a changing economy and increasingly flexible work patterns, where the numbers of people with more than job is rising,” Loane said.
A member of the super fund has approached ASIC to investigate potentially misleading or deceptive representations by UniSuper regarding the holdings of its sustainable portfolios.
The median growth fund delivered 1.9 per cent in March, adding to the “stunning” rally that has seen super funds gain 11 per cent since November.
Vanguard has affirmed its support for the current super performance test, emphasising the importance of keeping the process straightforward.
While some superannuation funds have gone down the route of internalisation, others say they favour ‘smart partnering’ with external managers for diversification appeal.
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