Financial Services Council (FSC) chief executive Sally Loane has reinforced the need for important policy reforms, particularly the introduction of a ‘default once’ system for superannuation.
Speaking at the launch of the Melbourne Mercer Global Pension Index at the FSC, she said there needed to be greater focus on the implementation of outstanding reforms to superannuation and retirement systems.
“We know Australia’s world class superannuation system is being held back by outdated policy settings that create inefficiencies and erode retirement savings,” Loane said.
“We continue to urge the Government, and Parliament, to implement the recommendations of both the Royal Commission and Productivity Commission to reform default superannuation by introducing a ‘default once’ system.”
This system would create a single default account for superannuation members, like a bank account or tax file number, which would allow a simpler transition process when moving jobs.
“Decoupling superannuation from the industrial relations system is an essential reform to deliver a superannuation system that is fit for purpose in a changing economy and increasingly flexible work patterns, where the numbers of people with more than job is rising,” Loane said.
Amid a challenging market environment, three super fund CIOs have warned against ‘jumping at shadows’.
The professional body is calling for the annual performance test to transition to a two-metric test, so it better aligns with the overarching duty of super fund trustees to act in the best financial interests of their members.
AustralianSuper, Rest, and HESTA agree on the need to retain and enhance the test, yet they differ in their perspectives on the specific areas that warrant further refinement.
Australia’s second-largest super fund has confirmed it is expanding its presence in the UK following significant investment in the region.
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