Advocates call for changes to superannuation sector

People will be hundreds of thousands of dollars worse off in retirement if the Federal Government doesn’t act now to stop the superannuation sector eroding savings.

Today the Productivity Commission has released its plan to reverse the outdated structure that has led to poor performing funds, multiple accounts and zombie insurance policies. Fixing these problems would see $3.9 billion returned each year to the savings of Australians. [1]

The Productivity Commission’s recommendations will ensure Australians will only ever be defaulted into a superannuation account once, typically when they join the workforce. This solution would permanently address duplicate account and fee issues. The report also strengthens the call for action on inappropriate life insurance and duplicate accounts.

The Protecting Your Super Legislation would address these issues but has been sitting before the Senate for months and has so far failed to pass after an intense lobbying effort from life insurers and super funds.

Quotes attributable to CHOICE CEO – Alan Kirkland

“Today’s report is a clarion call for political parties of all persuasions to fix this outdated system. It’s outrageous that in 2019 up to $3.9 billion is being leeched out of people’s retirement savings every year.”  says CHOICE CEO Alan Kirkland.

“Even more worrying is that industry continues to lobby against sensible consumer protections, such as the Protecting Your Super Package currently before parliament, which would address these problems. We need the Federal Government and all political parties to back reform that will leave Australians with more money in retirement”

Quotes attributable to Superannuation Consumers’ Centre (SCC) Head of Advocacy – Xavier O’Halloran

“The Productivity Commission has proposed a plan which for the first time places consumers at the centre of the superannuation system. The Federal Government needs to adopt these recommendations and make it easier for consumers to maintain a single, high quality fund. Past reforms have tinkered around the edges, this approach will finally deal with the multiple account problem and dramatically improve retirement savings,”

“The Royal Commission shone a light on what superannuation trustees were up to alone in the dark with our money and it wasn’t pretty. This report turns the light on the entire system and is the most complete map of its failures, as well as the path to how it should be fixed,”

[1] Productivity Commission, 2018, Draft report

Media contact: CHOICE Media, 0430 172 669,