Members ‘unlikely’ to remain in poorly-performing super funds: Grattan

super funds superannuation funds Grattan Institute superannuation Danielle Wood REST hostplus Josh Frydenberg

9 October 2020
| By Laura Dew |
image
image
expand image

While there is a possible danger of members remaining in poorly-performing super funds, this is the better option than them accumulating multiple accounts and paying multiple fees. 

That is the bottom line from the Grattan Institute on the ‘stapling’ changes to superannuation which were announced in this week’s Budget. 

Treasurer Josh Frydenberg announced super members would be ‘stapled’ to a super fund to avoid people accumulating multiple super fund accounts when they changed jobs.  

However, superannuation executives were concerned millions would be left stapled  to an underperforming fund for their working lives and relying on disclosure to establish if that fund was an underperformer. 

Speaking to Money Management, Danielle Wood, chief executive of the Grattan Institute, acknowledged people may hold off from proactively moving out of a poor performer but it was unlikely to happen. 

 “There is a danger but it is the lesser of two evils compared to people having multiple super funds and paying multiple fees on them.  

“It is always hard to change things but, on balance, this will lead to better outcomes,” she said. 

“People tend to start off their careers in a big fund that performs better so it is unlikely people will be stuck in a bad performer.” 

Senior superannuation industry executives have already suggested super funds which cover young people early on their careers such as REST and HostPlus stood to benefit from the stapling changes.  

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

ChrisC

I would also like to know, at what point investors become responsible for the investments they make?...

9 minutes ago
Peter Johnson

As others have said - plenty of excuses for further falls. How about decades of being continually beaten down by the...

3 hours ago
Duke Nukem

Finally someone with the guts to ask the hard questions of the corrupt body that governs us. Good on you Angry, ASIC mak...

4 hours 26 minutes ago

Insignia Financial has unveiled a new operating model and executive team, including a new head of advice, while three senior executives are set to depart the licensee....

1 week 6 days ago

ASIC has secured travel restraint orders against a financial adviser while he is the subject of an investigation into alleged financial misconduct....

1 day 20 hours ago

The $280 billion Australian Retirement Trust is the first superannuation fund off the block to report its performance for the 2023-24 financial year....

3 weeks 2 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Ardea Diversified Bond F
144.00 3 y p.a(%)
3
Hills International
63.39 3 y p.a(%)