David Whitely |
The Industry Super Network (ISN) has found a way of linking the proposed lifting of the superannuation preservation age to the question of financial adviser commissions.
ISN executive manager David Whitely has claimed that lifting the preservation age to 67 would not be necessary if the Government moved to increase the efficiency of the superannuation industry.
He said modelling undertaken by Access Economics and commissioned by the ISN found an increase in net performance of less than 1 per cent across the industry would be comparable with increasing compulsory contributions to 12 per cent.
Whitely also pointed to a recent study conducted by ISN on the opportunity cost of workers’ superannuation savings being directed to underperforming retail super funds by financial planners paid by commissions, and away from better performing funds.
He said the Government should seek to exhaust every option to improve how much super workers had before increasing the age that workers could access their own superannuation.
“The first and most obvious step would be to get the superannuation industry to increase its net performance by eradicating the conflicts of interest inherent in the sales commission system,” Whitely said.
The research house has offered a silver lining after super fund returns saw the end of a five-month streak last month.
A survey of almost 6,000 fund members has identified weakening retirement confidence, particularly among those under 55 years of age, signalling an opportunity for super funds to better engage with members on their retirement journey.
The funds have confirmed the signing of a successor fund transfer deed, moving closer to creating a new $29 billion entity.
A number of measures, including super on Paid Parental Leave, funding to recover unpaid super, and frameworks to encourage investment in the energy transition, have been welcomed by the superannuation industry.
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