Consumer understanding of the importance of superannuation represents a core issue in Australia closing the retirement savings gap, according to the chief executive of MLC, Steve Tucker.
Tucker told the opening day of the Investment and Financial Services Association Conference in Brisbane that the marketing and publicity surrounding the new choice of fund regime represented a real driver with respect to closing the savings gap.
He said that, as well, superannuation choice of fund would have the effect of “engaging employees while disengaging employers”.
On the crucial question of superannuation fees, Tucker predicted that, over time, there would be a narrowing of the gap between retail master trusts and industry funds.
However, he said that when discussing fees, it would be wrong to discount the value of financial advice in circumstances where it represented an essential service to many consumers.
Tucker said that the current campaign surrounding the new choice of fund regime was have a positive effect because it represented a wake-up call to the industry and an incentive to provide more cost-effective solutions.
