The industry needs to get behind the Productivity Commission’s (PC’s) recommendations and make it easier for Australians to manage their super as well as reduce the risks of unnecessary fees, according to financial advisory firm Dixon Advisory.
The PC’s final report into superannuation stressed the persistent underperformance and multiple accounts could reduce a member’s retirement balance by over $500,000 and proposed a number of recommendations to reduce the impact for new and existing super fund members.
Dixon Advisory’s head of advice, Nerida Cole, said: “While there are plenty of very good super fund options out there, it is not good enough that some members could remain in persistently poor performing funds over many years.”
Cole also said that the recommendations were extensive and therefore, if agreed by the government, they would take some time to implement.
“That’s why it’s vital that the Protecting Super Package announced in last years’ budget – that stops excessive fees and insurance premiums eating away small account balances and gives the ATO more power to consolidate lost and duplicate accounts – is finalized by the parliament as soon as possible,” Cole added.