Australian super costs competitive, says ASFA
The Association of Superannuation Funds of Australia (ASFA) has defended the cost structures underpinning the superannuation sector in the face of a Reserve Bank of Australia submission to the Financial System Inquiry.
ASFA chief executive Pauline Vamos said that rather than broad assertions about the need to slash costs, the focus of public policy discussion should be on improving retirement outcomes for all Australians through achieving the greatest net investment return on what is the main form of savings for most Australians.
She said that the RBA was correct to highlight that it was time for a conversation about whether the current fee structure itself promoted efficiency and competitive pressure in the superannuation system.
"But let's not forget that members have more power to exercise choice of fund and also of where to invest their retirement savings than ever before," Vamos said.
"Over the past few decades, the superannuation system has evolved from being dominated by a few employer-linked large funds to a myriad of different choices, which come with a variety of features and different sets of fees. This means members can choose a fund that is best suited to their particular needs," she said.
"In addition, the introduction of MySuper accounts means members have a number of low-fee accounts with simpler features, which they can compare using the product dashboards required for these products."
Vamos said other factors, such as an increase in electronic transactions, digital communication and new products, were also helping to drive efficiencies and cost reductions.
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