Older Australians have welcomed the key tenets of Jeremy Cooper’s Superannuation Review released this week but says more could be done around the handling of complaints.
National Seniors Australia chief executive, Michael O’Neill, said the Review’s emphasis on increased transparency and greater choice would boost consumer confidence in the retirement income system.
“The Review’s member, rather than industry, focus will encourage more Australians to have greater ownership and interest in saving for retirement,” he said.
“An overhaul is well overdue. As it stands, the superannuation system is industry-oriented, difficult to navigate and plagued by trailing commissions and hidden fees.
“Consumers really have little incentive to do more than the bare minimum,” he said.
“With research showing $40 billon has been lost from superannuation accounts to commissions since 1996 we particularly welcome the promise of reduced fees not only for this generation of retirees but the next,” he said.
“For current retirees we welcome recommendations for post-retirement investment strategy support taking into account factors such as longevity and inflation”.
However, one area requiring greater focus is dispute resolution.
“Polling amongst the over 50s shows significant dissatisfaction with the Superannuation Complaints Tribunal,” said O’Neill.
“The Report’s recommendations are unlikely to change this,” he said.
National Seniors is now urging the federal government to indicate its response to Cooper’s recommendations before the next election.