29 May 2018
Transforming superannuation system must preserve world class status
The Association of Superannuation Funds of Australia (ASFA) said today that the Productivity Commission’s draft report provides a comprehensive assessment of the superannuation system, which if implemented, has the potential to materially transform the industry.
“The proposal to allocate default superannuation to ten so called “best-in-show” funds would dramatically change the retirement funding landscape, and raises questions with respect to innovation, competitive intensity and diversity,” said Dr Martin Fahy, ASFA CEO.
The Productivity Commission’s draft report, ‘Superannuation: Assessing Competitiveness and Efficiency’, is the latest stage of the Commission’s multi-year process to assess the superannuation industry.
Australia has a world class superannuation system. It is ranked as one of the best retirement systems globally (behind only the Netherlands and Denmark) in terms of sustainability, adequacy and integrity.
The draft report observes that the majority of members and assets in the system are in products that have performed reasonably well. What’s more, only a small share of members are dissatisfied with their fund’s performance.
“Any changes to the system need to recognise the diverse needs of fund members.
“Members’ needs differ widely, including with respect to their occupation and their location.
“In particular, many smaller funds are able to provide niche offerings to their members, including tailored insurance and investment options, and the importance of this to members should not be underestimated,” concluded Dr Fahy.
For further information, please contact:
Katy Lithgow, 0451 949 300.
ASFA is the peak policy, research and advocacy body for Australia’s superannuation industry. It is a not-for-profit, sector-neutral, and non-party political, national organisation. ASFA’s mission is to continuously improve the superannuation system, so all Australians can enjoy a comfortable and dignified retirement.