Clarify goals and purpose of super: IPA
The Australian superannuation system lacked a measured purpose, the Institute of Public Accountants (IPA) said, as it welcomed Federal Treasuer Scott Morrison's push for a Productivity Commission's inquiry into the sector.
IPA chief executive, Andrew Conway, said the super system should be measured on achieving its clearly defined purpose, otherwise it would not be able to support the needs of the ageing population.
"With the upcoming budget expected to tinker even more with superannuation, the need to clarify the goals and purpose of superannuation becomes even more imperative," he said.
Consumers needed to be engaged with their super, and financial literacy needed to vastly be improved, Conway added.
"At the very least, consumers should be able to adequately compare fees and returns with other similar funds on a like-for-like basis, which means information needs to be disclosed in a more effective way."
He said the IPA believed the objective of the super system should be based around three main themes, which took social and fiscal considerations into account.
Those themes are "adequacy", to ensure that all retirees had a replacement income which gave a minimum standard of living, "sustainability", so the system could support itself financially and "be capable of delivery require benefits into the future", and "integrity", so the system was transparent, well governed, regulated, and had the public's confidence.
Recommended for you
With an advice M&A deal taking around six months to enact, two experts have shared their tips on how buyers and sellers can avoid “deal fatigue” and prevent potential deals from collapsing.
Several financial advisers have been shortlisted in the ninth annual Women in Finance Awards 2025, to be held on 14 November.
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
