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Shorten signals commitment to MySuper
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| Bill Shorten
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The Assistant Treasurer and Minister for Financial Services, Bill Shorten, has sent his clearest signal yet that the Federal Government intends to implement some version of the Cooper Review’s MySuper initiative.
Shorten sent his signal while releasing research commissioned by the Government confirming continuing consumer concern around superannuation and retirement incomes adequacy.
"This research underscores the need for the Government's wide-ranging reforms to boost Australians' retirement savings, a cornerstone of which is increasing the superannuation guarantee from 9 per cent to 12 per cent,” Shorten said.
He said that while the research indicated that attitudes to super were mostly positive, it also highlighted that consumers generally found information about superannuation to be confusing, too complex and full of impenetrable technical language.
“This is why I am pushing ahead with our election commitments to make Australia's superannuation system even easier and more user-friendly for consumers,” Shorten said. “It is why we are introducing MySuper and looking at ways to improve the day-to-day administration of superannuation.”
However, the research also warned that there was “a great deal of concern about the degree and incidence of changes to superannuation”.
“The perceived frequency of reform generates distrust and unease in planning superannuation strategies over a lifecycle,” it said.
“Consumers are confused and disenchanted; the superannuation system seems complex enough without having to constantly monitor and understand changes to regulations.”
The research findings said that perceived regulatory risk had many viewing superannuation as not their primary retirement savings vehicle, with funds being diverted to other investment classes (such as property or direct share holdings), where people felt a greater degree of control over their money.
AUTHOR
Mike Taylor
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