No-frills super option
Press release
16 December 2010
Older Australians have welcomed the Labor 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.
Earlier this year, two thirds of respondents in a National Seniors survey on superannuation supported the availability of independent performance comparisons.
“National Seniors welcomes the choice to go with the cheaper, no frill superannuation option”.
‘We also welcome Minister Shorten’s positive response to National Seniors’ representations for a stronger consumer presence in the roll out of the reforms and the continued operation of the system into the future,’ he said
With a quarter of a million members Australia-wide, National Seniors is the consumer lobby for the over-50s. It is the fourth largest organisation of its type in the world.
16 December 2010
Seniors welcome no-frills super option
Older Australians have welcomed the Labor 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.
Earlier this year, two thirds of respondents in a National Seniors survey on superannuation supported the availability of independent performance comparisons.
“National Seniors welcomes the choice to go with the cheaper, no frill superannuation option”.
‘We also welcome Minister Shorten’s positive response to National Seniors’ representations for a stronger consumer presence in the roll out of the reforms and the continued operation of the system into the future,’ he said
Media enquiries: Sarah Saunders 0409 055 156
With a quarter of a million members Australia-wide, National Seniors is the consumer lobby for the over-50s. It is the fourth largest organisation of its type in the world.
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