Seniors welcome no-frills super

Older Australians have welcomed the Federal government's commitment to cheaper, simpler and more transparent superannuation in its response to the Cooper Review.

Of the 117 Super System Review recommendations put to the Government in June, the most critical to consumers, said National Seniors chief executive, Michael O'Neill, was the introduction of the default, no-frills MySuper option

“For too long, the retirement savings of ordinary, hardworking Australians have been unknowingly milked by industry through fees and trailing commissions,” said O’Neill.

“It’s not illegal, but the super system is so murky, so complex that very few consumers would know they’ve been paying $85 a month or over $1000 a year in fees alone”.

“This green light for a simple default fund with lower fees means that when consumers hit retirement they’ll have an extra $40,000 in retirement savings,” he said.

“Australia Institute research suggests those savings could be as high as $100,000”.

“On both choice and default products, we are keen to see the development of an independent consumer-friendly website that would allow Australians to easily compare super funds, performance and fees,” he said.

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