Default super must meet certain standards
Superannuation funds need to meet certain standards if they are going to be nominated as a default super fund, including capping their fees and charges, prohibiting entry and exit fees, and getting rid of fees for ongoing advice workers don’t take advantage of, according to Josh Fear of the Australia Institute.
Fear made the remarks at the launch of a discussion paper on super, authored by Fear and Geraldine Pace of the Industry Super Network.
The Minister for Superannuation and Corporate Law, Nick Sherry, who presented the paper, said workers were not engaging with Super Choice and an effective default solution needed to be offered to deal with the problem. Less than 10 per cent of all workers actively choose their superannuation fund.
The Australian Prudential Regulation Authority should play a big part in gathering and publishing data on the long-term performance of super funds, Sherry said.
In the current market environment, it was more important than ever that super funds are “safe, stable and efficient” and good long-term performers, Sherry said.
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