Default Superannuation Funds

Auto-rollover default super could boost savings by over $400 billion

Automatically rolling super fund members into new default super funds when they switch employers could boost retirement savings by over $400 billion. Recent inquiries have looked to change how default super funds are set to tackle the issues of underperformance by funds and reduce unwanted multiple accounts. The Financial Services… Read More »Auto-rollover default super could boost savings by over $400 billion

‘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 system is not taking advantage of these opportunities. “Millions of… Read More »‘Smart defaults’ for super could boost retirement savings by 35%

$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 process is leaving up to 1.7 million people worse off… Read More »$94 billion trapped in subscale super funds due to industrial awards: FSC

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 fees by 13%, or $292 million a year. FSC CEO Sally… Read More »Increased default fund competition could save $292 million a year in fees

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 the government with developing alternative models for setting default super… Read More »Productivity Commission proposes four ways to revamp default super funds

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”. The campaign, called ‘Banks aren’t super’, includes a TV ad depicting… Read More »New anti-bank super campaign launched by Industry Super Australia

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, at a time when the Productivity Commission is considering such a… Read More »Tender process for default super “solution looking for a problem”: ASFA

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 banks continue to be active in recommending default funds to SMEs,… Read More »Banks getting more efficient with benefits to business switching default super funds