The Murray Inquiry and Superannuation
The Government released David Murray’s Financial System Inquiry final report in December. The FSI had a lot to say on superannuation. It recommended that Government clarify the objectives of superannuation, introduce a formal competitive process to allocate new default fund members to MySuper products (unless a review shows efficiency has improved), and require funds to provide post-retirement products. It also made recommendations on fund governance, fund borrowing, member engagement, financial advice and tax.
The government says it will respond to the FSI after its current round of consultation. The government also says it wants to bring competition to the market for default accounts – perhaps by removing superannuation from industrial awards.
A forthcoming Grattan report argues that the superannuation industry needs to become more efficient. There is much to be done to get a better deal for account holders: merge inefficient funds, close excess accounts, reduce complexity, and shift to lower cost investment management.
Join an expert panel for a discussion on superannuation and the FSI:
- Did the FSI ‘get it right’ on superannuation?
- How should Government respond?
- What should the goals for the superannuation system be?
- What is needed to improve retirement income design?
- Where are the inefficiencies in superannuation today and what causes them?
- How can policymakers and industry improve governance, disclosure, and competition?