FSI discussions place “undue” attention on super fees
Commentary descending from the Financial System Inquiry's (FSI's) interim report has unduly focused on superannuation fees, without consideration of member outcomes, according to SuperRatings.
The research company believes discussions of super fees, and their impact on the industry, should place equal weight on net benefits over the longer term.
SuperRatings founder, Jeff Bresnahan, said fees are "only half of the equation" and focusing solely on their detrimental effects "does all Australians a disservice".
"Any measures to increase competition or drive down costs through efficiency would be welcomed by the majority of the industry, but not if these come at the expense of poorer overall outcomes for members," he said.
"Members should have regard for the impact of both investment returns and fees, as at the end of day, the net benefit of this is what is actually delivered to member's accounts.
"Similarly, since superannuation is a long term investment designed to help members save for their retirement, longer term five, seven and ten year returns should form the main basis for comparisons."
Bresahan's comments come as SuperRatings released fund performance figures for July showing the median balanced option returned a 1.2 per cent gain in the month.
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