‘Smart defaults’ for super could boost retirement savings by 35%

‘Smart defaults’ for super funds could boost annual super fund returns by 3.5%-4.5% per year, increasing balances at retirement by 35%.

The Financial Services Council (FSC) says that new technology allows for individually tailored superannuation products, but the default MySuper

$94 billion trapped in subscale super funds due to industrial awards: FSC

Up to $94 billion of superannuation savings is “trapped” in small, subscale and underperforming superannuation funds due to the industrial awards system.

The figure comes from the Financial Services Council (FSC), which says Fair Work Commission’s default super fund selection

Increased default fund competition could save $292 million a year in fees

Increasing competition between super funds could save $292 million a year in fees, says the Financial Services Council.

The FSC has released research, by Deloitte Access Economics, which indicates increasing competition among MySuper super funds could reduce total administration

Vast majority want default super funds to return profits to members

The vast majority of Australians, 91%, believe that default superannuation funds should return all profits to members. This is the finding of a poll by Essential Media, conducted for the Australian Institute of Superannuation Trustees (AIST).

AIST CEO Eva Scheerlinck

Productivity Commission proposes four ways to revamp default super funds

It would be possible for a person to have a single default super fund in their lifetime, instead of having multiple default funds as they change employers, under models developed by the Productivity Commission.

The Productivity Commission was tasked by

New anti-bank super campaign launched by Industry Super Australia

Industry Super Australia has launched a new attack campaign on the banks and their “attempts to dismantle the model used by the most successful part of the superannuation system, and put at risk the retirement savings of millions of Australians”.

Tender process for default super “solution looking for a problem”: ASFA

The Association of Superannuation Funds of Australia (ASFA) says a Chilean-style tender process for selecting default superannuation funds is a solution looking for a problem.

ASFA has released a research paper on the Chilean tender process for pension funds,

Banks getting more efficient with benefits to business switching default super funds

Banks continue to offer benefits to businesses to encourage them to switch default superannuation funds for their employees and it appears to be producing results, according to research released by Industry Super Australia.

“The results clearly show that the

ASIC warns about issues with employers choosing default super funds

ASIC has warned about the issues with employers choosing default super funds for employees, including around incentives and the offering of inducements.

“Although employers currently have the legal responsibility to make a decision in relation to the default superannuation product,